(Failing to reach such a deal over the debt limit by early August, by the way, would lead to economic catastrophe and further cloud the unemployment outlook.)
If an extended period of slow growth is more likely than the official projections suggest, we're in for a much nastier mix of high unemployment in the near term and large budget gaps over the medium term. This is only more evidence that the right policy response is a combination of more aggressive action to bolster the job market now and much more deficit reduction enacted now to take effect in a few years. On both strategies, we should be as bold as we can.
Peter Orszag is vice chairman of global banking at Citigroup and a former director of the Office of Management and Budget in the Obama administration. The opinions expressed are his own.