The soaring US budget deficit, which surged to $2 trillion for the fiscal year ending in September, growing twice as fast as the economy itself, exemplifies the reasons behind the 5% yield rates. This deficit spike is primarily attributed to falling revenues, alongside increased spending on debt servicing, Social Security, and Medicare.
The US government had a $2 trillion budget deficit for the fiscal year through September, a gap that's $1 trillion more than the prior year. t.co/M69cTCs6Yl pic.twitter.com/LMOoK3Nxen
— Lisa Abramowicz (@lisaabramowicz1) October 24, 2023
Deficit Doubling and The US Economy
The U.S. federal deficit doubled to $2.02 trillion, stoking fiscal worries and deepening partisan tensions in Washington. The surge, impacted by significant drops in tax receipts and inflationary pressures, threatens to ignite political disputes, especially with looming changes to tax policies by 2025.
Thru September, U.S. federal budget deficit was 6.3% of nominal GDP pic.twitter.com/6gNOOkd1oN
— Liz Ann Sonders (@LizAnnSonders) October 24, 2023
Deficit Doubling as US Economy Grows Shows Why Yields Are at 5%
Main driver for widening deficit has been a slide in revenues
Spending rose on debt servicing, Social Security and Medicaret.co/uibTq4JC0u pic.twitter.com/SbGgQUbPZJ— Win Smart, CFA (@WinfieldSmart) October 24, 2023