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 new report shows the high budgetary stakes as a new Congress and president begin their terms and face critically important budget decisions this year. 

“By any definition, we are on an unsustainable fiscal path. We are currently on track to add $22 trillion to our national debt over the next ten years, including $14 trillion spent in interest costs alone.  In ten years, debt will grow to reach a staggering 118% of our entire economy. 

“Against this challenging backdrop, lawmakers will soon navigate a range of important fiscal decisions, including the debt ceiling, a government funding deadline and the expiration of trillions in tax cuts. 

“2025 carries critical budget decisions, and financial markets are watching. While the Fed has been lowering the federal funds rate, longer-term Treasury rates have risen — an unusual dynamic reflecting market concerns about future debt and inflation. 

“To meet this moment, it is essential that America demonstrates this basic fiscal competence: that we can keep our government open, avoid self-inflicted economic crises and begin to address our $36 trillion and growing national debt.

“As lawmakers consider the range of expiring tax policy at the end of the year, they should make a commitment to at least ‘do no fiscal harm.’ Moreover, they should avoid budget gimmicks and base their assumptions on neutral, nonpartisan estimates like this one from CBO. 

“Today’s report shows a daunting outlook, but the good news is that there are many policy solutions available to address our fiscal challenges. As we approach inauguration day, our leaders have a new opportunity to secure America’s economic future by putting us on a stronger, more sustainable fiscal trajectory.”