CBO: No Jobs Recovery Next Year

Is the job recovery picking up steam? Not according to the head of the CBO.

The director of the Congressional Budget Office painted a grim near-term picture of the American economy on Tuesday and said “cuts in federal spending and increases in taxes will tend to slow the economic recovery.”

At the same time, the director, Douglas W. Elmendorf, told a powerful new Congressional committee on deficit reduction that the government’s growing debt would “lead to lower output and incomes” and could “increase the probability of a sudden fiscal crisis.”