"Budget Watchdog Warns of Impending US Debt Danger"

The Congressional Budget Office projects that US federal government debt is on track to reach 116% of GDP by 2034, with potential for even higher levels. Bloomberg Economics' simulations show that in 88% of scenarios, the debt-to-GDP ratio is unsustainable. The Biden administration aims to address this through tax hikes, but bipartisan action from a divided Congress is necessary. Market participants are skeptical of the CBO's optimistic assumptions, and heavyweights across the political spectrum express concern about the nation's deficits. The US faces the risk of a debt crisis, which could have global repercussions.