CBO Sees Lower US Growth, Higher Unemployment This Year (1)

The Congressional Budget Office now expects higher inflation and unemployment this year and slower economic growth, after taking into account President Donald Trump’s tax law, tariffs and lower net immigration.

The nonpartisan CBO’s economic projections released Friday showed the economy will expand 1.4% in 2025, down from a January estimate of 1.9%. Inflation will pick up to 3.1%, nearly a full percentage point higher than the prior estimate, based on the Federal Reserve’s preferred gauge.

The report also shows unemployment peaking at a higher rate of 4.5% at the end of this year. Private forecasters similarly anticipatea slower pace ...