The Congressional Budget Office (CBO) just released an update to its 10‐​year fiscal projections. CBO highlights higher inflation, lower revenues, and higher spending than previously projected.

CBO’s report arrives as the debate over the debt ceiling heats up in light of an early June deadline. House Republicans passed their opening bid to raise the debt ceiling by $1.5 trillion or through March 2024, whichever comes first. The Limit, Save, Grow Act would save $4.8 trillion, reducing the 10‐​year spending total by 6 percent. So far, President Biden and most Congressional Democrats have refused to negotiate, demanding a so‐​called clean debt ceiling increase—despite strong precedent in U.S. history for pairing debt limit increases with policy reforms to address rising debt. According to Secretary of Treasury Janet Yellen, federal borrowing authority could run out by June 1.