(Bloomberg) –– The U.S. budget deficit is set to widen to $1 trillion by fiscal year 2020, two years sooner than previously estimated, according to the Congressional Budget Office.
The deficit will expand faster than thought after recent legislation that raised spending levels, according to the non-partisan group’s annual budget outlook released Wednesday. That effect was somewhat moderated by the expectation of lower interest rates, which reduces borrowing costs.
It would be the first time the deficit exceeded the $1 trillion mark since 2012, as the economy recovered from the financial crisis. The deficit breaching that threshold would come as President Donald Trump runs for re-election.