The head of Congress’ independent fiscal watchdog has warned the US economy is headed for a crisis point.
Director of the Congressional Budget Office (CBO) Phillip Swagel has said that Federal debt relative to gross domestic product is likely to rise above World War II levels, when it stood at 116 per cent of GDP, by 2029.
He warned that there is a risk that ignoring the debt could lead to a market shock similar to what happened when Liz Truss announced plans for sweeping tax cuts.
The announcement led to a run on the pound and forced Truss to resign.
Director of the Congressional Budget Office (CBO) Phillip Swagel has warned about both candidates
Getty
Swagel said that while the US is “not there yet”, government debt held by the public, which stood at $26.2trillion (£20.74trillion), or about 97 per cent of GDP, at the end of last year, is on an “unprecedented” trajectory.
Skyrocketing…
