Upbeat economic outlook aids Biden’s deficit push
The proposed budget, however, forecasts a trajectory for U.S. economic growth and inflation that is rosier than some outside analysts’ current forecasts. That is partly because the White House finalized its forecasts last November. But even compared with what other forecasters expected then, the budget’s projections for economic growth over the long term are also higher.
For example, the budget, based on estimates finalized in November 2021, sees inflation-adjusted U.S. gross domestic product growing 2.3% in 2032, measured on a fourth-quarter-over-fourth-quarter basis. That is higher than the 1.8% longer-run economic growth reflected in Federal Reserve officials’ median forecasts in September 2021.
It is typical for administrations to complete the budget’s economic forecasts some months in advance of the release. The latest projections were completed before the Federal Reserve’s start of a…