CBO Forecasts Soaring Debt Despite Fiscal Improvements

The Congressional Budget Office highlights a looming fiscal challenge, projecting federal debt to reach record levels in the coming decades despite recent policy adjustments.

• The Congressional Budget Office's latest report anticipates federal debt held by the public to surge to 107% of the GDP by 2029, and further to 166% by 2053.
• Recent fiscal measures, including spending caps and increased immigration, have slightly improved the long-term budget outlook.
• The projected total deficit for 2024 is 5.6% of GDP, a slight decrease from last year's estimate, with the deficit expected to grow in the following years.
• Rising debt levels pose significant risks to the U.S. economy, potentially increasing interest payments and slowing economic growth.
• Calls for bipartisan efforts to address the nation's debt crisis have intensified, with proposals for a fiscal commission to stabilize the debt-to-GDP ratio.

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The Fiscal Times Associated Press Washington Examiner