Federal Reserve Chairman Jerome Powell testifies before a House Financial Services Committee hearing titled “Monetary Policy and the State of the Economy” in Rayburn Building on February 27, 2018. Behind him is a debt clock, which each federal deficit cycle adds to. (Tom Williams/CQ Roll Call file photo)
The federal deficit could hit $1.1 trillion next year and $1.7 trillion in fiscal 2028, piling on debt that exceeds the size of the economy by the end of the decade, according to a Committee for a Responsible Federal Budget report released Friday.
If Congress extends individual tax cuts beyond their scheduled expiration and continues to raise discretionary spending levels above statutory caps, the debt will grow even faster, reaching $33 trillion or 113 percent of gross domestic product by fiscal 2028, the CRFB analysis said. Under that scenario, annual deficits would top $2 trillion within 10 years.