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CBO Director Warns US Fiscal Path Is 'Not Sustainable' ; Projects Additional $1.4T Deficit Swell Under Trump Agenda​

CBO Director Warns US Fiscal Path Is 'Not Sustainable' ; Projects Additional $1.4T Deficit Swell Under Trump Agenda | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

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The Congressional Budget Office raised its 10-year deficit estimate by $1.4 trillion, citing Trump's 2025 reconciliation act, higher tariffs and lower immigration.

• Annual deficits are projected to remain historically large, totaling $23.1 trillion from 2026 to 2035 and reaching 6.7% of GDP by 2036.
• The 2025 tax law is the single largest driver, adding $4.7 trillion to deficits over the decade, partially offset by roughly $3 trillion in tariff revenue.
• Federal debt held by the public is projected to rise to 120% of GDP by 2036, surpassing the post-World War II record by 2030.
• Interest costs are expected to double over the next decade, climbing from $1 trillion in 2026 to $2.1 trillion in 2036 as debt and rates rise.
• Economic growth is projected to strengthen in 2026 but slow to 1.8% thereafter, falling short of the administration’s 3% growth target despite productivity gains from artificial intelligence.

The federal government is barreling toward a decade of historically large budget deficits, according to a new report from the (arguably partisan) Congressional Budget Office (CBO), which said on Wednesday in a new report that recent tax and immigration policies have sharply worsened the long-term outlook.