Surging government red ink spurs economists' worries over a prolonged recession and market trouble

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Recessions And Depressions Nouvelles

National Debt,Economy,Markets

Burgeoning debt and deficits are threatening to make the next recession deeper while tying the hands of policymakers.

Burgeoning debt and deficits are threatening to make the next recession deeper while tying the hands of policymakers, according to two leading economists. The Congressional Budget Office this week revised its estimates to paint an even bleaker version of the U.S. financial picture. In the updated look, the budget shortfall is projected to be about $2 trillion for 2024, swelling to $2.8 trillion in 10 years.

Though the rate of inflation has decreased substantially from its mid-2022 peak, Federal Reserve officials insist it is still too high and they are not ready to lower interest rates . In its fiscal revisions, the CBO noted that the rise in debt and deficits has come from "growth in spending on programs that benefit older people and rising net interest costs.

 

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