Federal Deficits to Rise More Than Expected

The CBO says federal deficits are projected to grow much more than expected over the next decade thanks to the two-year budget agreement lawmakers and the White House struck last month, the Wall Street Journal reports.

“The agency increased its forecasts for deficits over the next decade by $809 billion, to $12.2 trillion… The increase primarily reflects higher federal spending under the new budget deal, partly offset by lower projected interest rates.”

New York Times: “Rising deficit projections are the result of sluggish growth in federal revenue after Mr. Trump’s 2017 tax cuts went into effect, and several bipartisan agreements to raise military and nondefense domestic discretionary spending, which Mr. Trump signed into law.”