Michael A. Peterson, CEO of the Peter G. Peterson Foundation, commented today on the release of the Congressional Budget Office’s Budget and Economic Outlook:

“CBO’s latest budget projection is an urgent warning to our leaders about America’s costly fiscal path. 

“Improving affordability for American families is a top priority for the nation.  Borrowing trillion after trillion takes us in the wrong direction, leading to higher interest costs and higher prices for everyday needs. 

“The federal government is now on pace to spend $16 trillion on interest alone over the next decade, adding $24 trillion to the debt to reach an alarming 120% of GDP.   And we all understand what’s driving this: predictable, structural factors like aging demographics, rising healthcare costs and interest, and revenues that do not adequately pay for our promises. 

“CBO’s baseline — as bad as it is — assumes interest rates will remain moderate and that we will face no costly unforeseen events. If those rosy projections do not transpire, the damage will only be worse.

“This election year, voters understand the connection between rising debt and their personal economic condition.  And the financial markets are watching.  Stabilizing our debt is an essential part of improving affordability, and must be a core component of the 2026 campaign conversation.”