The US federal budget deficit rose about 12% to nearly US$2 trillion for the fiscal year ended September 30, the largest since 2021, partly because of roughly US$145 billion in tariff refunds after the Supreme Court ruled against certain global tariffs. Net interest payments on the public debt topped US$1 trillion for the first time, the national debt hit a record US$40 trillion in August, and the 10-year Treasury yield reached its highest level since 2002, pushing up mortgage rates. Gross corporate tax revenue fell US$43 billion, or 9%, as the 'big, beautiful bill' allowed larger deductions, while most of its spending cuts, notably to Medicaid, will not start until next year. The deficit was more than 6% of the economy by Treasury's rough estimate, more than twice Treasury Secretary Scott Bessent's goal, and the US is expected to hit the debt ceiling again next year.
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Related tickers and likely impact
DXY
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/16/2026 | 101.78 |
| Change that session | -0.20% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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