NextFin news, The U.S. Congressional Budget Office (CBO) on Friday, September 12, 2025, in Washington D.C., released an updated economic forecast predicting a rise in inflation and unemployment rates this year, primarily due to tariff policies and a decline in net immigration.
The CBO lowered its 2025 economic growth forecast to 1.4%, down from the 1.9% projected in January. The inflation rate, measured by the Federal Reserve's preferred gauge, is now expected to reach 3.1%, nearly one percentage point higher than previously forecast. The unemployment rate is projected to increase to 4.5% by the end of the year.
The report attributes the inflation surge mainly to tariffs imposed on imported goods, which have increased prices for consumer goods and services across the United States. Additionally, the CBO cited restrictive immigration policies that have reduced net immigration, further impacting economic growth.
The CBO's findings highlight the economic consequences of policy decisions, including tariffs introduced during the administration of former President Donald Trump, which continue to affect the U.S. economy in 2025.
The report was published in Washington D.C., the seat of the U.S. federal government, where the CBO operates as a nonpartisan agency providing budget and economic information to Congress.
These projections were reported by multiple sources, including Bastille Post and Jinse Finance, confirming the CBO's revised outlook on the U.S. economy for 2025.
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