CBO Issues Scary As Hell New Debt Projections That Will Profoundly Impact American's Economic Future

CBO Issues Scary As Hell New Debt Projections That Will Profoundly Impact American’s Economic Future

CBO Issues Scary As Hell New Debt Projections That Will Profoundly Impact American’s Economic Future

If Interest Rates Increase by 1 Percent, the National Debt Will be 222 Percent of GDP

Merkley Recently Penned an Op-Ed Detailing How the Federal Government Could Get Control of Our Growing Debt and Deficit

WASHINGTON, D.C. - As interest rates continue to skyrocket due to high inflation caused by President Trump’s war in Iran and tariffs, the nonpartisan Congressional Budget Office (CBO) responded to a request from U.S. Senator Jeff Merkley (D-OR), Ranking Member of the Senate Budget Committee, detailing that the United States is on a path that is disastrous to our economic wellbeing. If interest rates were to rise even 1 percent above CBO’s current projected baseline, the federal debt would grow by an additional $39 trillion to 222 percent of Gross Domestic Product (GDP) over the next 30 years.

CBO’s previous analysis was published in May 2025, before the Republican One Big, Beautiful Bill Act (OBBBA) was enacted, making the deficit and debt’s growth much worse. At that time, CBO’s b...