What is the primary role of the Congressional budget office?

The primary role of the Congressional Budget Office (CBO) is to project federal budgets. This agency provides nonpartisan analyses of budgetary and economic issues to support the legislative process. The CBO estimates the costs of proposed legislation, assesses the impact of government spending and tax policies, and produces a baseline budget forecast that helps Congress in decision-making regarding fiscal matters. By providing these projections, the CBO plays a crucial role in ensuring that lawmakers have accurate and comprehensive information to craft budgets and evaluate the implications of their fiscal policies.

In contrast, entities involved in setting interest rates and regulating monetary policy are typically the responsibility of the Federal Reserve, which deals with the broader economy's monetary aspects. Drafting tax legislation is a function of Congress, but it is not the primary focus of the CBO, which acts mainly as an analytical body rather than a legislative drafting agency. Therefore, the correct understanding of the CBO's mission centers around its role in projecting federal budgets.