The current debt the U.S. owes is $31.4 trillion. But the CBO estimates the federal government will accumulate an eye-popping $19 trillion in debt over the next decade.
New laws passed by Congress since last year will account for $1.5 trillion of that debt. The CBO augers that the Inflation Reduction Act and the infrastructure bill will tack on an additional $3 trillion in debt which wasn’t anticipated around this time last year.Tax cuts approved by Congressional Republicans
The Federal Reserve raised interest rates up to 4.75 percent this year from practically zero. That means the government is paying more to borrow money. "Our projections suggest that changes in fiscal policy must be made to address the rising cost of interest and mitigate other adverse consequences of high and rising debt," said Swagel. The CBO cannot forecast another 9/11. Another war. Another 2008-esque financial meltdown. Another pandemic. Or even another gigantic spending bill.
The conversation right now focuses on the need to raise the debt ceiling in the summertime – forestalling a catastrophic federal default. The debt ceiling fights of 2011 and 2013 yielded minor fiscal agreements to cushion the looming economic debt crisis., suggests that some sort of accord is necessary to raise the debt ceiling this year. However, those previous agreements offer weak fiscal tea to counter the tsunami of debt which is now crashing down on the Washington shores.
"It’s challenging to balance the budget. And then it's challenging to balance the budget by setting part of the budget off limits. It’s arithmetically possible. But quite difficult."
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