The Congressional Budget Office has estimated that within its baseline budget projections The treasury would will run out of money sometime between July and September of this year unless the debt ceiling is raised or suspended.

“If the debt limit is not raised or suspended before the extraordinary measures are exhausted, the government would not be able to fully meet its obligations. As a result, the government would have to delay payments on some activities, default on its debt obligations, or both,” CBO Director said Philip Swagel.

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Swagel also noted that over the long term, their projections suggest that fiscal policy changes will need to be made to address rising interest costs and mitigate other adverse effects of rising debt.

The office has estimated the federal budget deficit at $1.4 trillion this year and annual deficits at an average of $2 trillion over the period 2024-2033.

Growth: The CBO said it expects stagnant economic growth and a slowdown in inflation in 2023 in response to the sharp rise in interest rates in 2022.

“After that, CBO projects output to grow at a more robust pace as inflation continues to fall towards Those of the Federal Reserve longterm goal of 2%,” it said.

The agency forecast much weaker real GDP growth in 2023 than last May, stronger growth in 2024-2026 and similar growth rates for the remainder of the period.

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