"CBO has done important analysis," Yellen says.
Other tidbits included: Yellen said the CBO "has done important analysis" on the likely effects on the economy of the Affordable Care Act.
(AP Photo/Cliff Owen) Photograph: Cliff Owen/AP Facebook Twitter Google plus Share Share this post Facebook Twitter Google plus close 11.44am ET16 44 Yellen is asked about the CBO report finding that some people may leave the labor market as a result of the Affordable Care Act.
For example, CBO projects that the significant tax increases and spending cuts that are due to occur in January will probably cause the economy to fall back into a recession next year, but they will make the economy stronger later in the decade and beyond.
As you can see from the CBO passage above, it's misleading to say that budget cuts "risk a financial crisis that would make matters worse".
In 2010 the CBO said the two would cost $1.5 trillion, or 6.4% of GDP, in 2020.
Mr Obama's economists also estimated potential by using a long-run average of actual output, adjusted for the business cycle; they suggested lower trend growth accounted for a little over half of the shortfall.The third estimate was from the Congressional Budget Office (CBO) last year.
The CBO fears that, from now to the end of the year, 400,000 jobs may be lost, though employment is "likely to rebound" later.
MY colleague is absolutely right that the new CBO report about the Affordable Care Act, or Obamacare, is bad for Democrats.
Don't take it from us; almost every impartial observer, including the CBO and the IMF, says the same.
This would not only save big sums, but also the CBO thinks boost GDP by 1%, as more of the elderly kept working.
