"President Donald Trump's tariff policy, immigration crackdowns and sweeping tax and spending laware expected to increase jobless rates and inflation and lower overall growth this year before they improve next year, according to a new report from the nonpartisan Congressional Budget Office. The CBO on Friday released new economic projections for the next three years, updating the outlook it originally released in January, before Trump's inauguration."
"Kush Desai, a White House spokesperson, told The Associated Press, "Americans heard similar doom-and-gloom forecasts during President Trump's first term, when the President's economic agenda unleashed historic job, wage, and economic growth and the first decline in wealth inequality in decades." "These same policies of tax cuts, tariffs, deregulation, and energy abundance are set to deliver - and prove the forecasters wrong - again in President Trump's second term," he said."
The Congressional Budget Office released updated projections showing unemployment, inflation, and overall growth are expected to be worse this year than projected in January. The CBO expects the economic picture to steady in subsequent years while generally reverting estimates toward long-term averages and not forecasting recessions. The updated outlook indicates near-term growth has been hampered by recent policy choices, with the CBO attributing a projected decline to factors including tariffs and weaker consumer spending. The CBO projects real GDP growth to fall from 2.5% in 2024 to 1.4% this year, down from 1.9%. The White House defended its policies and forecasted future gains.
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