US government debt hit a $40 trillion milestone in August, raising questions about whether the country is becoming a riskier borrower ahead of the midterm elections. Analysts say the 'term premium' on US bonds does not yet show worrying increases, but risks remain because the Trump administration has not taken concrete steps to reduce deficits or curb rising borrowing costs. The Treasury reported a roughly $2 trillion deficit for the fiscal year ended September 30, 12% larger than the previous year, with a record $1.36 trillion in debt service costs, and a deficit equal to about 6.2% of the economy versus a sustainable level near 3%. The Supreme Court struck down many of Trump's tariffs earlier this year, forcing $145 billion in refunds, while the 30-year mortgage rate reached 7.40%, according to Freddie Mac. Policy advocate Carolyn Bourdeaux urged candidates to explain how they would put the budget on a sustainable track.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on hawaiitribune-herald.com ↗
Keywords
public debtDonald Trumpbudgetbonds
Open a keyword to see other news on the same topic.
Related tickers and likely impact
DXY
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/19/2026 | 101.98 |
| Change that session | +0.20% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/19/2026 | 766.48 |
| Change that session | +0.42% |
XAU/USD
▲ Likely positiveRelevance: low
| Market | Gold |
|---|---|
| Close on 10/19/2026 | 4,140.75 |
| Change that session | -0.60% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Trump $2 trillion debt bomb now veering into new crisi : NYT analysis
The U.S. budget deficit rose to $1.99 trillion this fiscal year from $1.78 trillion in 2025, nearing its highest level since the pandemic. Spending on the military, safety-net programs and interest payments far outweighed the Trump administration's cost cuts. Rising Treasury yields pushed mortgage, credit card and auto loan rates to their highest in two decades earlier this month. Carolyn Bourdeaux of Concord Action warned that the country is heading toward a fiscal crisis without real action, while economist Daleep Singh said higher rates make the debt burden harder to sustain. The CBO said interest costs rose by more than $100 billion from 2025, and the deficit has climbed back above 6% of the economy, well short of Treasury Secretary Scott Bessent's 3% goal.
- Alarming budget math unveils historic wreckage of Trump absurd fantasties
According to Atlantic columnist David Frum, Trump's 2024 pledge to eliminate the national debt within one term rested on fantasies: closing a $1.8 trillion deficit with tariffs would have required a 55 per cent tariff on $3.3 trillion of imports with no change in consumer buying. Frum says DOGE's cuts to IRS auditing staff, which the Yale Budget Lab estimates could cost more than $860 billion in revenue over the next decade, worsened the deficit. Debt rose another $10 trillion, with tax cuts reducing revenue by $4.5 trillion, and Frum writes that the Supreme Court confirmed in February 2026 that tariffs are taxes Congress must approve. He concludes Trump has wrecked the country's finances worse than any government in U.S. history.
- $2 Trillion Man : Trump Oversees Deep Deficit in 2026
- Under Trump , deficits remain high while borrowing costs escalate
- Under Trump , deficits remain high while borrowing costs escalate
- US posts US$1 . 99 trillion budget gap for 2026 on spending rise
The US federal budget deficit widened to $1.99 trillion in fiscal 2026 through September, about 12% above last year’s $1.78 trillion, as spending rose roughly 6% to $7.4 trillion and receipts rose about 3% to $5.4 trillion. Net interest costs climbed $81.4 billion to a record $1.05 trillion, while Social Security and Medicare outlays also rose sharply. It is the fourth straight year with a deficit near $2 trillion, roughly 6% of GDP, and corporate income tax receipts fell by more than $70 billion after the 2025 tax bill. Treasury Secretary Scott Bessent argues growth can bring debt down, but IMF managing director Kristalina Georgieva and CBO director Phillip Swagel doubt growth alone is enough, while Trump has called for close to $500 billion more in defence spending.
Related markets
Latest news
- Bank Profits Surge
The 9-month 2026 results show many banks continued to grow profits, with some posting record quarterly earnings. VPBank's pre-tax profit reached nearly VND 30,000 billion, up nearly 47%, equal to its full-year 2025 result and about 72.4% of its 2026 plan; Q3 pre-tax profit topped VND 11,000 billion. Techcombank posted VND 28,900 billion (up 23.7%), while LPBank reported VND 10,421 billion (up nearly 9%). SSI forecasts pre-tax profit of its monitored banks to rise 19.5% in 2026 before slowing to 15.4% in 2027, pressured by narrowing net interest margins and rising credit risk provisions. It also expects system-wide credit growth of 16-17% in 2027 and 17.9% for the monitored banks.
- World's Largest Gold Fund Dumps Over 10 Tonnes of Gold as Prices Slide
SPDR Gold Trust, the world's largest gold fund, continued net selling of nearly 12 tonnes of gold in the 22/10 session, bringing total sales over 2 sessions to nearly 15 tonnes and cutting its holdings to about 1,046 tonnes. Spot gold fell more than 2.8% to around USD 4,025 per ounce at the close of 22/10, and briefly dipped below USD 4,000 per ounce in the morning session of 23/10. Tensions in the Middle East pushed crude oil prices higher, raising concerns about inflation and further Fed tightening, and gold has still not attracted sustained safe-haven demand even as US Treasury yields fell. US September CPI rose 0.6% month on month and 3.7% year on year, while PPI rose 1.3% and 6.3%. Markets price about an 84% chance the Fed holds rates steady at its 27-28/10 meeting and a 16% chance of a 25 basis-point increase; September PCE data due on 29/10 is the next key factor to watch.
- Gold Prices Continue to Fall
On the morning of 23/10, domestic gold prices kept falling, with SJC bar prices varying by seller and the premium over world gold widening. Công ty TNHH Vàng bạc đá quý Sài Gòn listed SJC bars at VND 139-142 million per tael (buy-sell), down VND 300,000; Phú Quý was at VND 138-141.8 million, down VND 500,000; and Mi Hồng at VND 140-141.5 million, down VND 800,000. Gold rings also fell by varying amounts, with DOJI at VND 138-142 million and Phú Quý at VND 138-141 million per tael. World gold dropped USD 129 to around USD 3,992 per ounce, equal to about VND 125.3 million per tael, leaving SJC bars about VND 16.7 million per tael above the world price. The State Bank's central rate was set at 25,627 VND/USD, down 5 dong, while Vietcombank quoted 25,660-26,040 VND/USD (buy-sell).
- Company Linked to Billionaire Pham Nhat Vuong Announces Major Good News
VEFAC (ticker VEF), a Vingroup subsidiary, posted Q3 net revenue of nearly VND 77 billion, up 67% year on year, but a gross loss of about VND 27 billion as cost of sales from its exhibition business exceeded revenue. Q3 profit rose mainly thanks to a gross gain of about VND 65 billion from transferring some schools in a project to a partner, while financial income reached over VND 388 billion, mostly from loan and investment income. For the first nine months of 2026, after-tax profit was nearly VND 865 billion, down about 94% from VND 15,418 billion in the same period of 2025, as the prior year included large gains from transferring part of the Vinhomes Global Gate project. As of 30/9/2026, total assets stood at over VND 31,905 billion, up 36% from the start of the year, while total liabilities exceeded VND 24,364 billion, with short-term customer advances rising from VND 411 billion to over VND 8,373 billion.
- Lotte and Phat Dat Officially Break Ground on VND 60,000 Billion Mega Project in Thu Thiem 'Golden Land'
A joint venture between Lotte Group (South Korea) and Phát Đạt (HoSE: PDR) officially broke ground on 23/10 on Lotte Eco Smart City Thu Thiem in the Thu Thiem New Urban Area, HCMC, with total investment of about VND 60,000 billion. The project covers nearly 7.5 ha and will combine Grade A offices, retail, services, accommodation and housing, adjoining the central plaza and central lake of Thu Thiem. Phát Đạt holds 35% of Lotte Properties HCMC, the project developer, and will develop the housing blocks along with two towers (2-1 and 2-3) with about 219,722 m2 of floor area, while Lotte handles block 2-5. Lotte Properties HCMC paid VND 17,569 billion in land-use fees on 31/7/2026, and Phát Đạt completed its VND 7,666 billion payment to take its 35% stake. MB is funding all of Phát Đạt's capital contribution, while VietinBank and BIDV also support the project.
- International Business : Global stocks nosedive as Meta dents AI optimism
Global stocks retreated as tech earnings failed to ease concerns about the AI outlook, with MSCI's All-World index set for its largest daily fall in two weeks, down 0.4 per cent. Meta beat third-quarter revenue expectations, but its plan to issue non-voting stock revived worries about its mounting capital commitments, and a New Mexico judge ordered it to pay a $25 billion penalty in a data privacy case. Brent crude rose nearly 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia raised supply risks. Investors moved into government bonds, pushing the US 10-year yield down to 5.05%, below France's for the first time in 13 years, while French yields have climbed above 5% amid concerns over social unrest and debt. The France-Germany 10-year spread reached 177.7 basis points, its widest since 2011, while gold fell 1.8% to $4,070 an ounce.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.