Federal budget deficit projected to hit $2 trillion this fiscal year, ranking among largest in US history

The U.S. is projected to run a budget deficit of at least $2 trillion in fiscal 2026, according to Treasury Department and bond market estimates. The outlook points to heavier sovereign borrowing needs, which is mildly negative for U.S. fiscal dynamics and relevant for Treasury supply and bond market pricing.

Analysis

The U.S. is projected to run a budget deficit of at least $2 trillion in fiscal 2026, according to Treasury Department and bond market estimates. The outlook points to heavier sovereign borrowing needs, which is mildly negative for U.S. fiscal dynamics and relevant for Treasury supply and bond market pricing.