speaker Kevin McCarthys deficit reduction plan would significantly slow economic growth and increase unemployment next year if it goes into effect, according to an analysis by Moody’s Analytics allegedly said.

What happened: The research unit headed by Mark Zandi estimated that gross domestic product in 2024 would rise 1.6% in the fourth quarter from the fourth quarter, while unemployment would end the year at 4.6% if the proposal went into effect, reported Bloomberg.

The numbers compare to a forecast of 2.25% growth and an unemployment rate of 4.2% if the debt ceiling were raised unconditionally, as President Joe Biden was demanding, it was said.

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“By the end of 2024, employment will be 780,000 jobs lower,” said Zandi and economist Bernhard Jaros wrote in a report.

Moody’s also noted that the program would curb federal debt expansion. Publicly traded debt as a percentage of GDP would be 106.5% by the end of 2033, compared to 116.5% otherwise, the report said.

Crucial vote: McCarthy had said on Sunday that the House of Representatives would vote on its spending and debt bill this week and also invited President Joe Biden discusses the debt ceiling.

“Taxpayers are on the hook for $10.5 TRILLION in interest on the debt. That’s just the interest payments — not even the debt itself. That’s more than we’ve had to pay in the last 80 years. We owe it to the American people to negotiate a responsible debt ceiling increase,” McCarthy said in his tweet.

Meanwhile the financial departmentwill shortly publish an updated estimate of the so-called “X-date” when the extraordinary measures have been exhausted and the US can no longer meet its obligations, called a Bloomberg report.

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