Unemployment, inflation and GDP growth will be worse this year than projected, budget office says
September 12, 2025
The Congressional Budget Office has released new economic projections, indicating that unemployment, inflation and overall growth will worsen in 2025 before improving over the next year. The CBO’s update reflects major legislative and policy changes under President Donald Trump, including his new tariff policy and immigration plans. The CBO outlooks attempt to set expectations for the economy in order to help choices made by congressional and executive branch policymakers. But Friday’s outlook showed the degree to which Trump’s choices are altering the path of the U.S. economy, suggesting that growth has been hampered in the near term by choices that have yet to show the promised upside of more jobs and lower budget deficits.