NEW YORK (CNNMoney.com) – The White House now expects the 10-year budget deficit to reach $9.05 trillion, roughly $2 trillion more than it estimated earlier in the year, according to a report released Tuesday by the Office of Management and Budget.
Budget office director Peter Orszag pointed to a number of measures put in place to stem the pain of the economic downturn.
"As a result of a deeper-than-expected recession, certain spending programs (such as unemployment insurance and food stamps) are projected to automatically increase and revenues are projected to automatically decline, compared to our previous projection," Orszag said in a statement.
A 10-year deficit of $9 trillion means the debt held by the public - the accumulation of all annual deficits over the decades - would reach 82% of gross domestic product. That's double the 41% recorded in 2008.
The administration's new deficit estimate brings it more in line with an earlier deficit estimate from the Congressional Budget Office, which is Congress' official scorekeeper. The CBO had estimated that the 10-year deficit would reach $9.14 trillion, or 5.2% of gross domestic product.
Later Tuesday morning the CBO also will release its updated budget and economic outlook for fiscal years 2009 to 2019.
WASHINGTON (CNN) - A Democratic official says the national party will hold more than 1,000 events over the next two weeks in its latest attempt to pressure Congress to embrace President Obama's call for health care reform.
Organizing for America, Obama's campaign operation now housed at the Democratic National Committee, is coordinating the "Health Insurance Reform Now: Let's Get it Done" events that are scheduled to kick off on Wednesday. Health Care for America Now, an umbrella organization of unions and other progressive groups, will be involved in helping to get people out to the events.
"We intend to demonstrate in the last two weeks of recess where the majority of American sentiment is on this issue – in favor of health insurance reform," said Brad Woodhouse, a DNC spokesman. Woodhouse predicted that "hundreds and in some cases thousands of local people" will attend and participate in the events.
Senators and congressmen have spent the month of August back home in their states and districts, holding town hall forums and meeting with constituents on the issue of health care reform.
WASHINGTON (CNN) - President Obama officially nominated Ben Bernanke to a second term as head of the Federal Reserve Monday.
"Ben Bernanke has led the Fed through the one of the worst financial crises that this nation and this world have ever faced," Obama said Tuesday in an announcement from his vacation spot in Martha's Vineyard.
"As an expert on the causes of the Great Depression, I’m sure Ben never imagined that he would be part of a team responsible for preventing another. But because of his background, his temperament, his courage, and his creativity, that’s exactly what he has helped to achieve," the president also said.
Text of Obama's full announcement after the jump
WASHINGTON (CNN) – It seems that what could have been one of the greatest political face-offs of 2012 is not meant to be after all.
A day after Connecticut Independent Sen. Joe Lieberman welcomed a possible 2012 challenge from actor Alec Baldwin, a representative for Baldwin tells CNN that "it's great to see the excitement" about the possibility of Baldwin seeking political office but the actor has no plans to run against Lieberman.
In a statement provided to CNN, the actor also took a stab at Lieberman, who has sometimes allied himself with Republicans, particularly on the Iraq war and Middle East policy.
"Part of me would hate to see Lieberman go," Baldwin said in the statement, because there are so few moderate Republicans left in the Senate today."
When asked about the possibility of facing Baldwin in 2012, Lieberman responded with a Dirty Harry-esqe "Make my day" on CNN's State of the Union Sunday.
"I respect Alec Baldwin as an actor and as a comedian," Lieberman also told CNN's John King, "if he wants to run, that's his right."
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CNN: Baldwin: Lieberman's one of a 'few moderate Republicans left'
It seems that what could have been one of the greatest political face-offs of 2012 is not meant to be after all.