The Congressional Budget Office came out with its closely watched annual forecast of federal spending and revenues Tuesday, which underpins U.S. tax and regulatory policy. The CBO is the place elected officials run to because it is considered the main source for credible, non-partisan numbers.
The CBO said U.S. gross domestic product will be weak this year and the U.S. budget deficit would drop to $845 billion. It also said that the government would add a scary $7 trillion to the federal deficit over the next 10 years.
However, the stock market rallied anyway yesterday.