US needs $2 trillion cuts

US politicians are far from finished with the job of deficit-cutting, the Congressional Budget Office (CBO) warned yesterday, saying that $2 trillion (£1.26 trillion) in additional savings is needed over the next 10 years to stabilize long-term US debt. In new long-term forecasts that will intensify the fiscal debate as critical deadlines loom, the CBO said US public debt will balloon to 100 per cent of the nation’s economic output in 25 years if no action is taken.