The bleak economic outlook comes as President Obama continues to tout his new jobs plan submitted to Congress earlier this week. On Tuesday, Obama addressed a rally in Columbus, Ohio.

President Obama: “Maybe there’s some people in Congress who would rather settle our differences at the ballot box than work together right now, but I’ve got news for them. The next election is 14 months away, and the American people don’t have the luxury of waiting that long. You’ve got folks who are living week to week, paycheck to paycheck. They need action, and they need it now.”

Obama has drawn praise from progressive Democrats for his $447 billion plan to spur job growth. But concerns are now being raised over Obama’s stated willingness to target entitlement programs such Medicare and Medicaid. In a new proposal next week, Obama is expected to call for nearly $300 billion to $500 billion in cuts to entitlements over a 10-year period.