The U.S. budget deficit widened by more than $200 billion, or about 12 percent, to $1.99 trillion in fiscal year 2026, its highest level in five years, according to Treasury data. Federal revenues hit a record $5.4 trillion, while outlays rose 6 percent to a record $7.4 trillion, including $1.36 trillion in debt-servicing payments. Treasury Secretary Scott Bessent blamed tariff refunds, high interest rates and the nine-month-old war in Iran, and said the deficit-to-GDP ratio fell to 5.8 percent last year. The Congressional Budget Office estimated the deficit at about $2 trillion, well above the White House's $1.7 trillion forecast, and warned that market volatility could push the $40 trillion national debt higher. A Peterson Foundation survey found 92 percent of voters concerned about debt's effect on inflation, with its Fiscal Confidence Index near a two-year low of 38.
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Read the original on theepochtimes.com ↗
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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