Simpson, Bowles See Recession, Inflation Without Budget Action

U.S. lawmakers must take steps to address $7 trillion in “economic events” next year or the economy may go into recession, the co-chairmen of President Barack Obama’s fiscal commission said on CNN.

Automatic tax changes and cutbacks to federal spending mandated by Congress as part of last year’s agreement to raise the federal debt limit may affect as much as 2 percent of the U.S. gross domestic product next year, co-chairman Erskine Bowles said on CNN’s “Fareed Zakaria GPS.”