Page 3 - Us Deficit News Today : Breaking News, Live Updates & Top Stories | Vimarsana

The US budget deficit has increased to $1.7 trillion, posing potential challenges for President Joe Biden's reelection campaign. The deficit grew by $320 billion due to a drop in tax revenues and lower Federal Reserve earnings, caused by higher interest rates. The deficit is the third-largest on record, although it almost doubles to around $2 trillion when excluding the impact of Biden's canceled student loan forgiveness program.

The 10-year Treasury yield has surged in September. Bond vigilantes could try to rein in runaway government spending by pushing yields even higher.

"What those facts say to me is that we're not going to find hundreds of billions of dollars for Ukraine in our budgets."

The solution is simple, but remains politically unpalatable: Spend less. It doesn’t matter how high taxes go, if the government spends more than it collects, the U.S. national debt will continue to soar.

The 10-year Treasury yield will remain at around 4.25%-4.5%, as the government needs to finance its widening deficit, Ed Yardeni wrote.