The U.S. Congressional Budget Office lowers this year's economic growth forecast and raises the unemployment rate projection.
Jinse Finance reported that, considering former U.S. President Donald Trump's tax policies, tariffs, and the reduction in net immigration, the Congressional Budget Office (CBO) has raised its forecasts for U.S. inflation and unemployment rates this year, while lowering its expectations for economic growth. The agency's economic forecast released on Friday shows that the U.S. economy will grow by 1.4% in 2025, down from the 1.9% predicted in January. The inflation rate will rise to 3.1%, nearly one percentage point higher than previously forecast, based on the Federal Reserve's preferred inflation indicator. The report also shows that the U.S. unemployment rate is expected to reach a higher peak of 4.5% by the end of this year.
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