The Congressional Budget Office, the keeper of US budgetary orthodoxy (such as it is) sees slower GDP growth than previously forecast
- 2011 GDP seen around +1.5% from 2.3% , 2.5% in 2012 from 2.7%
- US unemployment estimate raised to 9.1% from 8.9%; will remain near 9% through 2012
- Immediate govt spending cuts and tax hikes would be an added drag on a weak economy
- Long-term deficit cuts would hold down interest rates shore up confidence