The budget deficit swells, while the cost of debt rises

The U.S. budget deficit has ballooned to $2 trillion this fiscal year, marking the largest deficit since 2021. This increase is driven partly by the rising cost of servicing the nation's enormous debt. Interest rates are climbing, influenced in part by the inflationary impact of the Iran war. Consequently, the federal government has paid $1.052 trillion in net interest on its outstanding debt, including various Treasury notes, as the overall budget deficit continues to swell.