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CBO director says impact of stimulus will soon fade

Congressional Budget Office Director Keith Hall said it’s still expecting a slowdown in U.S. economic growth this year — to 2.7% in 2019 — and then the impact of the stimulus will fade. He acknowledged the CBO has a different view on the economy than the White House. “We see most of the effects as being stimulative, and stimulus wears out after a while,” he said on CNBC. Hall also said deficits still matter. “When things turn less good, we’re going to see the deficit balloon after that and it will affect the flexibility of things,” he said.

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