The U.S. federal government closed fiscal year 2026 with a deficit of nearly $2 trillion, according to the Congressional Budget Office, second only to the pandemic years of 2020 and 2021. Federal revenue rose 3% to more than $5.4 trillion, but spending climbed 6% to $7.4 trillion, with interest on the debt up 11% to over $1.1 trillion. The author argues that even if the roughly $130 billion in tariffs struck down by the Supreme Court had been kept, they would cover less than a tenth of the gap. He calls for reforms to Social Security, Medicare and Medicaid, and warns that U.S. debt could reach 120% of GDP within a few years, as France’s already has.
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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% |
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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