CBO Director: We're Facing 'Weakening Economy with High Inflation' in First Half of 2023 and 'Large Deficit That's Set to Persist'

On Friday’s broadcast of the Fox Business Network’s “Cavuto: Coast to Coast,” Congressional Budget Office (CBO) Director Phillip Swagel stated that while it is mathematically possible to balance the federal budget within ten years without touching Social Security and other entitlement programs, the Congress “has inherited a very difficult” fiscal situation, because, in addition to the U.S. having “a very large deficit that’s set to persist,” it’s facing “a weakening economy with high inflation” in the first half of the year.

Swagel said, [relevant remarks begin around 4:35] “[I]t’s a very challenging situation. And at CBO — I appreciate what you said at the beginning — at CBO we do our work with impartiality, we’re non-partisan and we do it with integrity…it’s mathematically possible to balance the budget within ten years and leave Social Security and other entitlements aside. It’s very challenging. And there’s a sense in which policymakers today, the Congress today, has inherited a very difficult situation, a very large deficit that’s set to persist, at the same time, the economy in the first half of this year is facing a weakening economy with high inflation, so it’s a — the fiscal situation is very challenging.”

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