Tipping Point: CBO Director’s Warning on America’s Fiscal Path

Source: Independent Institute
by Craig Eyermann

“The director of the Congressional Budget Office is sounding the alarm on the U.S. government’s unsustainable fiscal path. … Swagel’s bigger message is that the growing cost of financing the national debt increases the risk of a government-debt-induced fiscal crisis in the United States. The ‘snap back,’ he fears, would be in the form of a sharp increase in interest rates should the bond market become reluctant to loan money to Uncle Sam. That scenario played out in the United Kingdom in 2022 under Prime Minister Liz Truss, which led to her resignation in very short order. Can something similar happen in the U.S.? It may be more likely than many would like to admit.” (03/28/24)