The United States is facing a serious fiscal challenge: in May 2025, the federal deficit soared to $316 billion, making it the third-largest monthly shortfall in U.S. history. Although April saw a brief surplus due to tax inflows, May's spending once again tipped the scales, placing renewed pressure on public finances.

💸 Annual Deficit Already Surpasses $1.36 Trillion

For the first eight months of the 2025 fiscal year, the cumulative deficit has reached $1.36 trillion, up 14% year-over-year. The U.S. Treasury Department also reported that in May alone, the government paid $92 billion in interest – more than any category except Medicare and Social Security.

With the total U.S. debt now at $36.2 trillion, interest payments have already hit $776 billion this fiscal year and are on track to exceed $1.2 trillion by year-end.

📈 Tariff Revenue Helps – But Not Enough

While tax revenues rose by 15% in May, government spending increased even faster – up 2% month-over-month and 8% compared to last year. Tariffs gave a temporary boost: following President Donald Trump’s "Liberation Day" initiative in April, the government collected $23 billion from tariffs in May, up from just $6 billion a year earlier. For the year, tariffs have brought in $86 billion, a 59% increase.

Trump’s new trade policy has helped revenues, but not enough to offset soaring costs.

⚠️ Wall Street Raises the Alarm

Despite revenue growth, the fiscal outlook remains concerning. 10-year Treasury yields are hovering around 4.4%, roughly unchanged from last year but still painfully high for a government borrowing trillions.

Top Wall Street figures – Jamie Dimon (JPMorgan), Larry Fink (BlackRock), and Ray Dalio (Bridgewater) – have all voiced serious concerns about the growing debt burden. The U.S. deficit now accounts for over 6% of GDP, a level rarely seen outside of wartime or global crises.




#usa , #USPolitics , #FederalReserve , #TRUMP , #Tariffs

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