Economics
Biden Budgets Challenge Agency That Kept Predicting Deficit Doom
- CBO forecasts have repeatedly warned of fiscal crisis risks
- Agency says it’s adjusting to era of low interest rates
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President Joe Biden’s administration appears relaxed about running large budget deficits, but for one government agency that’s usually been a cue to start sounding alarms.
The nonpartisan Congressional Budget Office –- whose job is to evaluate how new legislation will affect the public finances -- finds itself in a tough spot as Biden prepares to announce an economic package worth as much as $3 trillion, on top of his $1.9 trillion pandemic relief bill earlier this month.