The Congressional Budget Office just released its latest economic outlook for the US economy through 2025.
Among other things, the CBO expects the US deficit to grow starting in 2018 and that GDP growth will average 2.5% from 2014-2018, down from a prior outlook for 2.7%.
“The revision mainly reflects a reduction in CBO’s estimate of potential output and therefore of the current amount of slack in the economy. On the basis of the current projection of potential output, CBO now forecasts that real GDP in 2024 will be roughly 1 per cent lower than the level estimated in August,” the CBO said in its report on Monday.
The CBO also said, “Interest rates on Treasury securities, which have been exceptionally low since the recession, will rise considerably in the next few years, CBO expects, but remain lower than they were, on average, in previous decades.”
The CBO also sees inflation reaching 2% in 2017 and staying near there through 2025.
Here are the CBOs charts projecting GDP, inflation, unemployment, and the 10-year yield.
In short, here is what the CBO sees as your economic future, America.