U.S. Budget Deficit Surges in November
The U.S. budget deficit saw a significant increase in November, putting the fiscal year 2025 on a much faster pace compared to the previous year, when the deficit exceeded $1.8 trillion, according to the Treasury Department's report on Wednesday.
November Deficit Details
- The deficit for November totaled $366.8 billion, which is 17% higher than November 2023.
- For the first two months of the fiscal year, the deficit is more than 64% higher than the same period last year.
Revenue and Spending
- Receipts for November were $301.8 billion, about $27 billion more than last November.
- Outlays totaled $668.5 billion, nearly $80 billion more than a year ago.
National Debt and Interest
- The increase in the deficit brought the national debt to $36.1 trillion by the end of November.
- On an adjusted basis, the deficit was $286 billion, with a year-to-date total of $544 billion, an increase of 19%.
- Despite the Federal Reserve enacting two rate cuts since September, totaling three-quarters of a percentage point, interest expenses remain a significant contributor to the deficit.
- Net interest expenses for November were $79 billion, and for the fiscal year so far, they are at $160 billion, outpacing all other outlays except Social Security, Medicare, defense, and health care.
- The Treasury Department expects to pay $1.2 trillion in total interest on debt this year.
These figures highlight the challenging fiscal situation in the U.S., especially with rising interest expenses. Forex traders should closely monitor these economic indicators as they can have a significant impact on the markets.
