- ORIGINAL NEWS
U.S. deficit tops half a trillion dollars in the first quarter of fiscal year
- SUMMARY
The US government accumulated a massive budget deficit of nearly $510 billion in the first quarter of fiscal 2023.
This surge in red ink, totaling over $129 billion in December alone, pushed the total government debt past $34 trillion for the first time.
The deficit is continuing to grow despite the Biden administration’s promises that the Inflation Reduction Act would reduce it by hundreds of billions.
Compounding the issue, interest rates have risen as the Federal Reserve battles inflation, leading to financing costs of $660 billion in 2023.
As a result, debt as a percentage of gross domestic product reached 120% by Q3 2023.
- NEWS SENTIMENT CHECK
- Overall sentiment:
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“The U.S. government ran up another half a trillion dollars in red ink in the first quarter of its fiscal year.”
“The jump in the deficit pushed total government debt past $34 trillion for the first time.”
“December’s shortfall was higher by more than $34 billion compared to the previous year, driven by higher Social Security payments and interest costs.”
“With interest rates elevated as the Fed fights inflation, financing costs for the government in 2023 totaled nearly $660 billion.”