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US Federal Debt Projected to Reach $150 Trillion by 2055, CBO Forecasts

The Congressional Budget Office’s forecast indicates a significant rise in US federal debt, with implications for household debt and national debt-to-GDP ratio.

Summary

The Congressional Budget Office (CBO) projects that the US federal debt will reach $150 trillion by 2055, which would equate to roughly $1.6 million per American household, a sharp increase from the current $274,000. The debt-to-GDP ratio is also expected to surge to a record 169%, up from its current level.

Terms & Concepts
  • Debt-to-GDP Ratio: A measure of a country's debt compared to its Gross Domestic Product, used to assess the sustainability of a nation's debt.
  • CBO Forecast: A projection made by the Congressional Budget Office regarding the future state of the US economy, including federal spending, revenue, and debt levels.