President Biden and the Democrat-led Congress helped add $3.1 trillion to the federal deficit over the next decade, the Congressional Budget Office said Wednesday, delivering a depressing picture of the government’s finances and the economy.
Unemployment will start to tick back up this year, interest rates will remain high, inflation will come down slowly and output will be stagnant in 2023, with gross domestic product growing at less than half a percentage point, the analysts said.
Emergency pandemic spending will dissipate, which will help a little. But it will also reveal the true disconnect in the government’s finances, with normal spending “substantially” exceeding the government’s revenue every year, said Phillip L. Swagel, CBO’s director.
“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,” Mr. Swagel said.
The government will