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.
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budgetpublic debtpublic spendingDonald Trump
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Related tickers and likely impact
DXY
▼ Likely negativeRelevance: medium
| 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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