What roles do the U.S. president and Congress play in fiscal policy?

The U.S. president and Congress play a crucial role in fiscal policy, primarily through their ability to enact budget decisions. Fiscal policy involves government spending and taxation decisions, which directly impact economic activity. The president proposes a budget and outlines fiscal priorities, which are then sent to Congress. Congress, with its authority to approve or modify the budget proposals, ultimately enacts fiscal policy through legislation.

This collaborative process means that both branches of government hold significant power in shaping fiscal policy, determining how public funds are allocated and how tax policy is structured. Effective fiscal management is essential for addressing economic challenges, promoting growth, and managing inflation, making the involvement of the president and Congress vital in guiding the nation's economic direction.