CBO Report Highlights Unsustainable Fiscal Trajectory, Historic Deficits

The Congressional Budget Office projects deficits above 5% of GDP for the next decade, signaling a fiscal situation spiraling out of control.

The CBO's recent outlook shows deficits remaining above 5% of GDP for the next decade, with the deficit for fiscal year ending Sept. 30 projected at about $1.6 trillion.
Historically large deficits are attributed to pandemic spending and increased interest rates, with net interest costs soon to exceed the defense budget.
House Republicans' attempt to curb spending through a debt limit bill faces challenges, as spending caps are likely to be exceeded, nullifying projected deficit reductions.
CBO Director Phillip Swagel faced scrutiny over the accuracy of the agency's projections during a House Budget Committee hearing.
The recent CBO report forecasts the debt held by the U.S. public reaching a record high, with federal budget deficits projected to climb over the next decade.