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The American Treasury Department is seen in Washington, DC, January 19, 2023.
Saul Loeb | AFP | Getty images
The American government derived further in Red Ink in May, with a booming debt and deficit problem, the Treasury Department reported on Wednesday.
After making a short -term surplus in April thanks to receipts from the tax season, the deficit totaled just over $ 316 billion for the month, spending the total from the start of the year to $ 1.36 Billion.
The annual count was 14% higher than a year ago, although the total of May 2025 is 9% lower than the deficit of May 2024.
The growing financing costs were again a major contributor to tax issues, with interest on the debt of 36.2 billion of dollars exceeding $ 92 billion. The costs of interest on net have exceeded all other expenses with the exception of health insurance and social security. Debt financing should exceed $ 1.2 billion for this exercise, totaling $ 776 billion in the first eight months of the fiscal year.
Tax revenues have not been the problem. Receptions increased by 15% in May and increased by 6% compared to a year ago. Expenditure increased by 2% per month and increased by 8% compared to a year ago.
The price collections have also helped to compensate for part of the deficit. The gross customs duties for the month totaled $ 23 billion, compared to $ 6 compared to the same month a year ago. For the year, raw tariff collections totaled $ 86 billion, up 59% compared to the same period in 2024.
However, the yields maintained above – after having dived last summer in September, they proved to be direct opposition to the rate reductions in the federal reserve, relaxed at the start of the year, then liable again after the announcement of the “Liberation Day” of President Donald Trump. The 10 -year treasure yield is practically unchanged from a year ago around 4.4%.
In recent weeks, Wall Street leaders, including JPMorgan Chase CEO Jamie Dimon,, Blackrock CEO Larry Fink and Ray Dalio by Bridgewater Associates have warned against disorders that could come from the burden of expensive debt. The deficit currently represents more than 6% of the gross domestic product, practically unknown in American economies in peacetime.
