The Congressional Budget Office reported a federal deficit of nearly $2 trillion for fiscal year 2026, worse than any year except the 2020 and 2021 pandemic years. Revenue rose 3% to more than $5.4 trillion, but spending rose 6% to $7.4 trillion. Spending on Social Security, Medicare and Medicaid grew 7%, and interest on the debt rose 11% to exceed $1.1 trillion. The author argues the problem is spending rather than a lack of revenue, and proposes reforms such as indexing the retirement age to life expectancy, converting Medicare to premium support, and capping Medicaid spending per enrollee. The piece also warns that rising debt pushes up interest rates for households and small businesses.
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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% |
PAXG/USDT
▲ Likely positivePAX Gold
Relevance: low
| Market | Crypto |
|---|---|
| Exchange | Binance |
| Sector | Real-world assets |
| Market cap | $1.8B |
| Close on 10/16/2026 | 4,162.70 |
| Change that session | +0.11% |
XAUT/USDT
▲ Likely positiveTether Gold
Relevance: low
| Market | Crypto |
|---|---|
| Exchange | Binance |
| Sector | Real-world assets |
| Market cap | $3.4B |
| Close on 10/16/2026 | 4,159.65 |
| Change that session | +0.15% |
XAU/USD
▲ Likely positiveRelevance: low
| Market | Gold |
|---|---|
| Close on 10/16/2026 | 4,165.63 |
| Change that session | -0.13% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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