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Federal Debt Could Increase Risk of ‘Fiscal Crisis’ Without Policy Changes: CBO

Federal debt held by the public is currently on track to reach its highest levels since World War II.

Federal debt levels are set to skyrocket over the next 30 years, according to a new report from the Congressional Budget Office. If current laws don’t change, debt levels could result in a “fiscal crisis,” Politico reports. The amount of debt held by the public is expected to rise from 78 percent to 144 percent of gross domestic product over the next 30 years, which would be the highest level in U.S. history. The average debt over the last 50 years has wavered around 40 percent, only surpassing 70 percent in the aftermath of federal spending for World War II. Current projections show a likely hike in interest rates, which would contribute to the expected crisis along with an aging population, increased health care costs, and more funding for Social Security and Medicare.