Eying the Economy

The Congressional Budget Office released a report Wednesday stating the sharp increases in federal taxes and reductions in federal spending that, under current law, are slated to begin in 2013 are likely to interrupt recent economic progress, probably resulting in a recession. Wall Street analyst Byron Callan of Capital Alpha Partners questioned the report's estimated base-budget defense outlays, noting it was unclear whether CBO included military personnel in the reduction, or excluded military personnel funding in accordance with White House guidance.