Economy, U.s. Debt | featured news

Projections suggest the debt will continue to grow faster than the economy, which would have to expand by at least 6% a year to keep pace.

Democratic leaders called on Wednesday for new spending and tax cuts to boost the sluggish U.S. economy, setting up a fresh hurdle for bipartisan efforts to head off a government debt default this summer.

The International Monetary Fund cut its forecast for U.S. economic growth on Friday and warned Washington and debt-ridden European countries that they are "playing with fire" unless they take immediate steps to reduce their budget deficits.

The Federal Reserve board said that it would use the proceeds from its huge mortgage-bond portfolio to buy long-term Treasury securities.