CBO Chief Says US Needs 5%-6% GDP Growth to Stabilize Debt Through Growth Alone
JH Kim
Summary
- Phillip Swagel, director of the Congressional Budget Office, said GDP growth of 5% to 6% would be needed to stabilize the national debt through economic growth alone.
- Walter Bloomberg reported that Swagel, discussing the US fiscal outlook and national debt outlook, said current concerns over the national debt are not having a major impact on Treasury yields.
- He said, however, that the direction of US fiscal policy could put upward pressure on interest rates in the future.
Forecast Trend Report by Period
Phillip Swagel, director of the Congressional Budget Office, said the US would need gross domestic product growth of 5% to 6% to stabilize the national debt through economic growth alone.
Walter Bloomberg reported on October 8 that Swagel made the remarks while discussing the US fiscal outlook and the national debt outlook.
He said concerns about the national debt are not having a major effect on Treasury yields at the moment.
Still, he warned that the direction of US fiscal policy could put upward pressure on interest rates over time.
JH Kim
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