The Congressional Budget Office downgraded its forecast for U.S. economic growth this year and raised its unemployment rate forecast
2025-09-12 23:00:34
The Congressional Budget Office (CB0) raised its forecast for U.S. inflation and unemployment this year and lowered its forecast for economic growth, taking into account U.S. President Donald Trump's tax code, tariffs and reduced net immigration. The agency's economic forecast, released on Friday, showed the U.S. economy would grow 1.4 percent in 2025, down from a predicted value of 1.9 percent in January. Inflation would rise to 3.1 percent, nearly a percentage point higher than previously forecast, based on the Federal Reserve's preferred measure of inflation. The report also showed that the U.S. unemployment rate is expected to reach a higher peak of 4.5 percent by the end of the year.
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