Fed Chair Janet Yellen, no foe of easy money, has some bad news for Washington and its spendthrift ways:
Federal Reserve Chairman Janet Yellen, referencing the Congressional Budget Office’s long-term budget projections, told the Joint Economic Committee of Congress today that under current policies the federal government’s deficits “will rise to unsustainable levels.”
In the 10-year budget projections it released in April, the CBO estimated that the federal government will run $7.618 trillion in deficits from 2015 through 2024. At the same time, the CBO projected that the federal government’s debt held by the public would rise from $11.983 trillion at the end of fiscal 2013 to $20.947 trillion by the end of 2024.
That’s assuming there’s no crisis between now and then, shrinking Washington’s tax receipts while demanding spending boosts.
And the next crisis must be worse than the last one, because before it even happens, we’re already just about out of ammo to fight it.