The Congressional Budget Office says it expects the U.S. economy to stagnate this year
Ford Broncos line the front of Gus Machado's Ford dealership Monday, Jan. 23, 2023, in Hialeah, Fla. On Thursday, the Labor Department releases the producer price index for January, an indicator of inflation at the wholesale level that's closely monitored by the Federal Reserve. WASHINGTON — — The Congressional Budget Office said Wednesday that it expects the U.S.
The CBO separately pointed to the risks of not increasing the government's legal borrowing authority, noting that the Treasury Department could exhaust its current “extraordinary measures” to keep the government running while President Joe Biden and House Speaker Kevin McCarthy jostle over a deal. The outlook warns about rising yearly budget deficits. In 2033, the CBO anticipates that the yearly shortfall in tax revenues relative to spending would exceed $2.85 trillion, more than double the deficit in 2022. Publicly held debt was roughly equal to U.S. gross domestic product in 2022, but it would climb to 118% of GDP by 2033.
“Over the long-term, our projections suggest that changes in fiscal policy must be made to address the rising costs of interest and mitigate other adverse consequences of high and rising debt,” Phillip Swagel, the CBO's director, said in a statement.
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