CBO Director Says 5%-6% Real Growth May Be Needed to Stabilize Debt

CBO chief warns it's 'probably not plausible' that a strong economy alone can steady U.S. debt as 5%-6% growth is needed—more than Bessent's 3% view

"So then we're left with changes in revenues and changes in spending, and those are inherently political choices."

CBO Director Says 5%-6% Real Growth May Be Needed to Stabilize Debt

Phillip Swagel said growth alone is unlikely to steady the U.S. debt trajectory if interest rates remain between 4% and 5%.

CBO chief warns it’s ‘probably not plausible’ that a strong economy alone can steady U.S. debt as 5%-6% growth is needed—more than Bessent’s 3% view

Congressional Budget Office Director Phillip Swagel said faster economic growth is unlikely to keep U.S. debt in check, even if GDP expands at more than double its current pace. Gross debt is now $40 trillion, and publicly held debt is 100% of GDP. Just keeping that ratio flat, let alone bringing…

It’s ‘probably not plausible’ that a strong economy can steady U.S. debt as 5%-6% growth is needed

Congressional Budget Office Director Phillip Swagel said faster economic growth is unlikely to keep U.S. debt in check, even if GDP expands at more than double its current pace. Gross debt is now $40 trillion, and publicly held debt is 100% of GDP. Just keeping that ratio flat, let alone bringing it down, would require […]