Economics
Stockton Says Fiscal Cliff Effect May Exceed CBO’s Estimates
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The so-called fiscal cliff may take a bigger toll on the U.S. economy than the Congressional Budget Office projects, according to David J. Stockton, a senior fellow at the Peterson Institute for International Economics and former top economic forecaster at the Federal Reserve.
The three-year-old U.S. expansion faces headwinds from a slowing global economy and the risk lawmakers will fail to avert $607 billion in federal tax increases and spending cuts slated to take place next year.