BWC Chair William C. Dudley suggests that the US fiscal outlook is deteriorating, with the Congressional Budget Office projecting annual deficits of about 6% of GDP over the next decade, which would push federal debt to record levels. Key drivers include an aging population raising Social Security and Medicare costs, reduced tax revenues from recent legislation, and higher defense spending. Rising debt and higher interest rates are expected to increase debt-service costs significantly, raising concerns that the country’s fiscal path may become unsustainable.  

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All views expressed by members are their own and not reflective of the views of the Bretton Woods Committee.