Peterson Foundation Statement on CBO 10-Year Budget and Economic Outlook

May 25, 2022

NEW YORK — Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the release of the Congressional Budget Office’s updated 10-Year Budget and Economic Outlook. Peterson said:

“The most important takeaway from today’s CBO report is that interest costs are higher, adding to an already unsustainable fiscal outlook. Interest costs will total $8.1 trillion over the next 10 years, $1.9 trillion more than was projected just last year.

“This report is the first since the Federal Reserve began taking necessary steps to fight inflation, and we are seeing the added risk and real costs that come with debt and deficits as high as they are in the U.S. Rapidly growing deficits as far as the eye can see are not good for wages, economic growth or our ability to invest in the future for the next generation.

“This year’s deficit is down in comparison to last year, but that is due primarily to the automatic expiration of pandemic relief programs, rather than any steps taken to stabilize our debt or deal with the growing structural imbalances between spending and revenues.

“Looking ahead, we need to address the key drivers of our debt, which include high healthcare costs, an aging population and a tax code that is inadequate for what we have promised our citizens. Stabilizing our debt will help build a foundation for broad-based economic growth and make us better prepared for the challenges and opportunities of the future.”

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