The COVID-19 pandemic and the associated policy responses have had a significant impact on the budgets of federal, state, and local governments. This policy brief examines the impact of these events on the fiscal status of the federal government. The long-term fiscal outlook through 2050 has deteriorated somewhat, the brief says. But the long- term projections show that significant fiscal imbalances remain and will eventually require attention, it says. The brief also discusses how the current episode compares to past debt changes, the role of historically low interest rates, and recent Federal Reserve Board policies.
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