CBO director: Stabilizing U.S. debt through strong economic growth alone is “probably unrealistic”; 5%–6% real GDP growth needed

Congressional Budget Office (CBO) Director Phillip Swagel said it is “probably unrealistic” to stabilize U.S. debt through economic growth alone. He estimated that, with interest rates at 4%–5%, nominal GDP would need to grow by 7%–8% and real GDP by 5%–6%, far above the 2.2% real growth rate in the second quarter. The CBO projects the debt-to-GDP ratio will rise to 120% by 2036.