U.S. fiscal deficit reaches 314 trillion yen, third-largest on record

The U.S. fiscal deficit for the 12 months through September 2026 amounted to 314 trillion yen, the third-highest level in history, driven by rising interest payments and prior pandemic-era spending. This follows the record deficits of fiscal 2020 and 2021.

Why it matters. The elevated deficit reflects growing debt-servicing costs and ongoing fiscal pressures, affecting long-term U.S. fiscal sustainability and potentially influencing monetary policy and Treasury market dynamics.