The Congressional Budget Office released an economic outlook Wednesday saying high inflation will persist into next year, likely causing the federal government to pay higher interest rates on its debt.
WASHINGTON —
The Federal Reserve has been trying to reduce inflation by raising its benchmark interest rates, causing the interest charged on 10-year U.S. Treasury notes to increase substantially in recent months. One consequence is that the government will be spending more money this year to service its debt. By 2032, the yearly interest payments will nearly be $1.2 trillion, or more than what the federal government spends on defense.
“The American Rescue Plan has fostered an extraordinarily fast recovery and leaves us in a strong position to address the global challenges posed from supply chains and the economic fallout from Russia’s invasion of Ukraine,” he tweeted. The report says beyond 2032, “if current laws remained generally unchanged, deficits would continue to grow relative to the size of the economy over the following 20 years, keeping debt measured as a percentage of GDP on an upward trajectory throughout that period.”
“Stabilizing our debt will help build a foundation for broad-based economic growth and make us better prepared for the challenges and opportunities of the future,” he said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Congressional Budget Office says inflation to last into 2023The Congressional Budget Office released an economic outlook Wednesday saying high inflation will persist into next year, likely causing the federal government to pay higher interest rates on its debt. The nonpartisan agency expects the consumer price index to rise 6.1% this year and 3.1% in 2023. This forecast suggests that inflation will slow from current annual levels of 8.3%, yet it would still be dramatically above a long-term baseline of 2.3%.
Read more »
SF Mayor Breed announces new budget investments in permanent supportive housingMayor London Breed on Wednesday announced a planned $67.4 million in her upcoming two-year budget focused on permanent supportive housing.
Read more »
Federal budget deficit could shrink to $1 trillion this year, CBO saysThe US budget deficit could shrink to $1 trillion this year from $2.8 trillion last year as federal spending on Covid-19 aid slows and the economy rebounds, the nonpartisan Congressional Budget Office says
Read more »
Mat-Su Borough Assembly passes reconsidered budget after cuts to school district scrutinizedAfter pushback from the Matanuska-Susitna Borough School District over an $11 million cut to the educational operating budget, the Mat-Su Borough Assembly re-adopted a budget which reinstated funding to the district.
Read more »
Barnes & Noble unveils budget e-book reader | Digital TrendsBarnes & Noble has just taken the wraps off a budget version of the Nook GlowLight 4, the e-book reader that it launched last December.
Read more »
SF budget proposal could raise SRO caseworker wages to $28 per hour - The San Francisco ExaminerMayor London Breed proposed allocating $67.4 million in funding for permanent supportive housing, which would include pay raises for employees, hiring more case managers and upgrading buildings.
Read more »