New budget projections show US hitting debt record in 4 years: CBO
Published On Jan 17, 2025, 6:15 PM
The Congressional Budget Office (CBO) has released new projections indicating that the U.S. federal debt held by the public is expected to reach 118% of GDP by 2035. This marks a significant increase from 98% at the end of FY 2024 and surpasses the previous record of 106% set after World War II. The increase in debt is driven by rising costs in Social Security, Medicare, and growing interest payments, resulting in projected deficits of $1.9 trillion by 2025 and escalating further in subsequent years.
Stock Forecasts
TLT
Negative
The growing U.S. debt and substantial budget deficits could lead to increased borrowing costs and restrict fiscal policy options, likely causing investor concern over government bonds and impacting interest rates.
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