CBO News Updates

The CBO says shifts in U.S. tariff policy may add $1.1 trillion to federal budget deficits over a 10-year period, though exact calculations aren’t yet possible.

The Federal Reserve is expected to cut short-term rates in 2026, with its key interest rate settling at 3.4% toward the end of President Donald Trump's term in office in 2028, according to the CBO.

GDP is already poised to be at least one percentage point lower in the fourth quarter due to the government shutdown, according to the CBO report released Oct. 29.

The CBO handed Republicans a major political talking point, with projections showing the possibility for tariffs to bring in more federal revenue than would be lost by Trump's tax cut plan.

The U.S. economy will see a slightly deeper contraction this year but a bigger rebound in 2021 than previously forecast, according to updated estimates from the Congressional Budget Office.