CBO today released its new budget and economic update, showing higher ten-year deficit and debt projections from 2012 to 2021 than they predicted back in August. The 2011 deficit is projected to be the highest in history (in nominal dollars), $1.48 trillion, while the ten-year deficit is close to $7 trillion, up by about $725 billion from where it was in August.
Congressional leaders have agreed to reappoint Doug Elmendorf as the director of the Congressional Budget Office. Mr. Elmendorf, who has been the director of CBO since 2009, was officially reappointed to the position today by Speaker of the House John Boehner (R-OH) and the Senate President Pro Tempore Senator Daniel Inouye (D-HI).
The International Monetary Fund (IMF) released its World Economic Outlook update today, on the eve of two big moments for U.S.
What Will He Say? – On Tuesday President Obama will avail himself of one of the most effective tools a President has to shape the Washington agenda and the political narrative – the annual State of the Union address.
Shooting Puts Legislative Business on Hold – The shooting of Congresswoman Gabrielle Giffords and 19 others in Tucson, Arizona has resulted in House leaders suspending legislative activity this week. The only vote now expected this week is one on a resolution honoring Giffords and the other victims of the attack. The House was going to vote this week on repealing the health reform law.
There has been an increasing amount of talk this week concerning calls for repeal of the health care reform legislation, as the 112th Congress convened for the first time this Wednesday. The House is scheduled to vote on a bill calling for a full repeal of the legislation this coming Wednesday.
Last week, we reported the good news from the Congressional Budget Office that the Troubled Asset Relief Program (TARP) would cost $25 billion, significantly less than any previous estimates. Now, the Treasury has announced the sale of its remaining Citigroup stock for $10.5 billion, another bit of good news for taxpayers.
CBO has issued new numbers for the total costs of the Troubled Asset Relief Program (TARP). CBO now estimates that TARP will cost $25 billion over the life of the program. This is down $41 billion from CBO's previous estimate of $66 billion in their August 2010 Budget and Economic Outlook, $84 billion less than CBO's March 2010 estimate, and $88 billion less than OMB's most recent analysis (which relies on data up to May 31, 2010).
CBO gives the reasoning as to why the cost estimate has gone down over the past year: