Deficit likely to hit $1.8 trillion in 2009.

Later today, the Congressional Budget Office (CBO) will be releasing a report projecting the federal deficit. According to aides on Capitol Hill, it will likely reach $1.8 trillion this year, and fall to $1.4 trillion in 2010. The CBO’s previous estimate had the deficit hitting $1.2 trillion. Watch an MSNBC report on the numbers:

As Washington Post columnist Steven Pearlstein pointed out, the numbers confirm that “the recession is worse than they thought when they did these things last time,” and thus it is “more urgent…for us to spend more money to stimulate the economy.”


Yglesias has a download from Orszag’s conference call today.

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