BBC News with Marion Marshall
The United States has urged the Egyptian authorities to
implement
political and economic reforms as they face continuing anti-government protests. The American Secretary of State Hillary Clinton said the government had an important opportunity to
respond to
what she called the
legitimate
needs and aspirations of the Egyptian people. Earlier, police used tear gas in Cairo against thousands of demonstrators. Here's Paul Adams.
It's clear that Washington is watching events on the streets of its most
populous
Arab ally with growing concern. It's not just that the US worries about the destabilising potential of violent unrest at the heart of the Arab world at a time when President Mubarak's days in office are gradually
drawing to a close
.
Egypt is also a key political and military ally in the region.
The US Congressional Budget Office says the federal budget deficit is likely to hit an all-time high of
nearly
$1.5tn. It said this was nearly 40% above earlier predictions. Here's Andrew Walker.
The financial crisis and the resulting recession did extensive damage to the US government finances. According to the Congressional Budget Office, the CBO, it's now on course for the third
consecutive
year of borrowing more than $1tn. In his State of the Union address on Tuesday, President Obama acknowledged the need to reduce the deficit. It could fall sharply over the next few years if tax breaks and spending policies expire as planned. But they have already been extended, and there'll be political pressure for that to happen again.