The nation's budget deficit is estimated to hit $1.28 trillion in 2011, according to a report released by the Congressional Budget Office (CBO).  Today's announcement on the economic situation also projected "a modest pace" of growth through 2013. The U.S. jobless rate is said to stay above 8% percent through 2013.

CBO updated its forecast based on the passage of the compromise deficit reduction law in August. The CBO says that plan could lead to "considerably lower" deficits over the next ten years if Bush-era tax cuts and other temporary measures are allowed to expire.