The U.S. Congressional Budget Office on Thursday projected significant increases in federal budget deficits and debt over the next 30 years, in part due to rapidly rising interest costs, as it sketched out sluggish economic growth and a shrinking workforce. The U.S. public debt meanwhile is seen rising alarmingly, to 156% of GDP in 2055 from 100% in 2025. As the non-partisan budget analyst for Congress, the CBO bases its projections on current law, which could change significantly in the short-term.
US economic growth to slow in the next 30 years, fueled by debt and declining birth rates, CBO says
Weak population gains and increased government spending will result in slower overall economic growth over the next 30 years, the nonpartisan Congressional Budget Office said Thursday. The CBO’s latest long-term budget and economic outlook report — for a timeframe that spans 2025 to 2055 — projects publicly held debt to reach 156% of gross domestic product, or GDP, in 2055. The mix of slower population growth and unfettered spending will also result in weaker economic growth over the next three decades than what the CBO projected last year.
Trump's auto tariffs complicate Fed's deliberations on rates
(Reuters) -President Donald Trump's permanent 25% tariff on imported autos has expanded the global trade war, feeding expectations for higher prices for cars and other products, but doing little to settle the debate about how policies of his two-month-old administration will affect the U.S. economy. With more tariff announcements looming next week, Federal Reserve policymakers remain in a holding pattern on interest rates. With surveys showing signs of economic trepidation and a drop in confidence, central bankers are watching to see if this spills into "hard" data like the still-low unemployment rate.
Fed Backstop Fears Could Threaten Dollar, Deutsche Bank Says
(Bloomberg) -- The withdrawal of a time-tested liquidity backstop offered by the Federal Reserve would represent the greatest risk to the dollar’s status as a reserve currency since the end of World War II, according to Deutsche Bank.Most Read from BloombergWhy Did the Government Declare War on My Adorable Tiny Truck?How SUVs Are Making Traffic WorseTrump Slashed International Aid. Geneva Is Feeling the Impact.These US Bridges Face High Risk of Catastrophic Ship StrikesAffordable Housing Develop
Lebanon appoints new central bank governor as it works to climb out of economic crisis
Lebanon appointed asset manager Karim Souaid to the post of central bank governor Thursday as the government tries to reform the economy after months of war and decades of mismanagement and corruption. The country's economy has been in crisis for five years and desperately needs reforms to unlock international aid, and on top of that, Israel’s 14-month war with Hezbollah caused what the World Bank estimates was $11 billion in damages and economic losses. The appointment was announced by Prime Minister Nawaf Salam, the International Court of Justice jurist who was named Lebanon’s premier in January following the election of President Joseph Aoun earlier that month.
20 Top High-Yield Savings Accounts To Combat Inflation This Spring
Americans hoping their savings account rates will stay ahead of inflation have had a tough time over the past few years. Though the current U.S. inflation rate is 2.8% in 2025, according to the...
IMF Says US Economy Slowing But Doesn’t Forecast Recession
(Bloomberg) -- The International Monetary Fund sees the US economy shifting into a lower gear this year as President Donald Trump pushes forward with aggressive tariffs but doesn’t see a recession on the horizon.Most Read from BloombergWhy Did the Government Declare War on My Adorable Tiny Truck?How SUVs Are Making Traffic WorseTrump Slashed International Aid. Geneva Is Feeling the Impact.These US Bridges Face High Risk of Catastrophic Ship StrikesAffordable Housing Developers Stalled by Blocked
US applications for unemployment benefits hold steady, remain in recent healthy range
U.S. applications for unemployment benefits held steady last week, a sign that the labor market remains healthy as companies continue to retain their employees. Jobless claim filings ticked down by 1,000 to 224,000 for the week ending March 22, the Labor Department said Thursday. Weekly applications for jobless benefits are considered a proxy for layoffs, and have remained mostly in a range between 200,000 and 250,000 for the past few years.
U.S. economy grew 2.4% in the 4th quarter after upgrade in final growth estimate
The U.S. economy expanded at a healthy annual 2.4% pace the final three months of 2024, supported by a year-end surge in consumer spending, the government said Thursday in a slight upgrade of its previous estimate of fourth-quarter growth. Growth in gross domestic product — the nation’s output of goods and services — decelerated from a 3.1% pace in July-September 2024, the Commerce Department said. Consumer spending rose at a 4% pace, up from 3.7% in third-quarter 2023.
Norway Delays First Rate Cut of Cycle After Inflation Pickup
(Bloomberg) -- Norway’s central bank delayed a long-communicated cut in borrowing costs until later this year as officials responded to a flare-up in inflation.Most Read from BloombergThey Built a Secret Apartment in a Mall. Now the Mall Is Dying.Why Did the Government Declare War on My Adorable Tiny Truck?How SUVs Are Making Traffic WorseTrump Slashed International Aid. Geneva Is Feeling the Impact.These US Bridges Face High Risk of Catastrophic Ship StrikesNorges Bank held the deposit rate at