A Republican plan to cut federal spending in exchange for lifting the United States government’s debt ceiling would lower employment, slow economic growth and “meaningfully increase” the likelihood of a recession, Moody’s Analytics’ chief economist told a Senate committee on Thursday.
Mark Zandi told the Senate Budget Committee that US GDP growth would be 1.61 percent in 2024 if the Republican plan were enacted, compared with 2.23 percent otherwise, and lead to 790,000 fewer jobs.
