The Congressional Budget Office (CBO) issued a pessimistic outlook for the economy this week, shortly after the Federal Reserve Chair Jerome Powell suggested that lower interest rate increases are likely on the horizon.
In a Nov. 30 letter responding to questions posed by Sen. Steve Daines (R-Mont.) regarding the CBO’s current view of the economy, the office warned that sustained high interest rates and inflation over the next two years were likely and could lead to slow economic growth and larger budget deficits.
