The nonpartisan Congressional Budget Office warned of increased risk of fiscal crisis in a new report.
The Congressional Budget Office projects the federal debt will exceed the economy’s size by the end of the year and will balloon to 202% of gross domestic product over the next 30 years. And that’s their outlook without factoring in President Joe Biden’s, which is making its way through the Senate this week. According to the nonpartisan office, by the end of this year, the federal debt will be 102% of GDP, a proportion that will nearly double by 2051. The CBO warns this increases the risk of a fiscal crisis and higher inflation moving forward. The projections come after the coronavirus pandemic last year triggered the deepest economic downturn since World War II. With millions of people out of work and businesses temporarily or permanently shut down, revenues decreased while spending soared. The White House and congressional Democrats warn the United States is far from out of the woods in its efforts to contain the coronavirus pandemic and revitalize the economy.
