CBO Projects $6 Trillion in Added U.S. Deficits Under Higher Rates

The Congressional Budget Office (CBO) projects that interest rates 1.5 percentage points above its February 2026 baseline through 2036 would add $6 trillion to federal deficits, increasing the government’s borrowing burden. That scenario raises net interest costs on debt in CBO’s baseline projections by $4.9 trillion. The baseline includes debt projected to accumulate during the period, as well as debt already outstanding. Interest on additional borrowing caused by the larger deficits adds $1.1 trillion. In a separate scenario with all interest rates 0.5 percentage point above baseline from 2026 through 2036, cumulative deficits grow by about $1.9 trillion.

Source: TokenPost