U.S. deficit tops $1 trillion for first time
WASHINGTON – Nine months into the fiscal year, the federal deficit has topped $1 trillion (U.S.) for the first time ever.
The imbalance is intensifying fears about higher interest rates and inflation, and already pressuring the value of the dollar.
The U.S. Treasury Department says the deficit in June totalled $94.3 billion (all figures U.S.), pushing the total since the budget year started in October to nearly $1.1 trillion.
The deficit has been propelled by the huge sum the government has spent to combat the recession and financial crisis, combined with a sharp decline in tax revenues cash advance online. Paying for wars in Iraq and Afghanistan is also a major factor.
The country’s soaring deficits are making some foreign buyers of U.S. debt nervous, and this could make them reluctant lenders down the road.
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