Today, the Progressive Policy Institute released a statement from Ben Ritz, Director of PPI’s Center for Funding America’s Future, in reaction to the Congressional Budget Office’s updated Budget and Economic Outlook:
“Today’s Budget and Economic Outlook from the Congressional Budget Office should be a wake-up call for every policymaker who cares about America’s financial stability in a post-Covid economy. Since the last baseline projection in May 2022, Congress has passed legislation that, in CBO’s estimation, added $1.5 trillion to deficits over the coming decade. Now, CBO projects that the national debt is on track to break its historical record as a share of economic output by 2028 – that’s three years sooner than under the previous projection. Meanwhile, CBO expects inflation to remain above the Federal Reserve’s 2% target until 2026 even after accounting for recent rate hikes. It’s long past time for Congress to adjust to the new reality that the window for deficit-financed stimulus is shut and a pivot to responsible and anti-inflationary deficit reduction is desperately needed.”
The Center will publish more analysis of the CBO report next week.
The Progressive Policy Institute (PPI) is a catalyst for policy innovation and political reform based in Washington, D.C., with offices in Brussels and Berlin. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Learn more about PPI by visiting progressivepolicy.org.
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