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

Congressional Budget Office Director Phillip Swagel said stabilizing the U.S. debt trajectory through economic growth alone is unlikely, estimating that real GDP growth would need to reach roughly 5%-6% if interest rates remain between 4% and 5%. Swagel made the comments during a scheduled conversation with Minneapolis Fed President Neel Kashkari on Oct. 8. The discussion was scheduled for 10:40-11:20 a.m. ET (14:40-15:20 UTC). Under those interest-rate conditions, Swagel estimated that nominal GDP growth would need to reach about 7%-8%. He described the figures as rough, back-of-the-envelope calculations rather than formal CBO projections. The estimate is well above the U.S.

Source: TokenPost