US FY2026 Deficit Widens 12% to $1.99T, 6.2% of GDP

The US Treasury reported a $1.992 trillion public deficit for October 2025–September 2026, up 12% year-over-year, driven by tariff reimbursements and rising debt interest. The deficit now equals an estimated 6.2% of GDP, up from 5.9% in 2025, though GDP figures remain preliminary. This signals persistent fiscal expansion, which may pressure long-term yields and complicate Fed policy.