US budget deficit reaches $2 trillion
The US federal budget deficit reached approximately $2 trillion in fiscal year 2026, while federal debt climbed to $40 trillion in August.
According to a Reuters analysis published on October 19, persistently high budget deficits and rising borrowing costs are fueling concerns about the country's fiscal outlook.
The fiscal 2026 shortfall ranked as the third-largest budget deficit in US history. Federal debt reached approximately 100% of gross domestic product (GDP), while rising bond yields increased the cost of government financing.
The Trump administration argues that economic growth and trade policies could help ease fiscal pressures, while analysts emphasize the importance of concrete measures to reduce the budget deficit. The growing debt burden remains a significant risk factor for the US Treasury market and long-term interest rate expectations.
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