The United States records a budget deficit of $1.8 trillion.

The United States recorded a budget deficit of $1.833 trillion for the fiscal year 2024,
according to Treasury Department data released on Friday.
This is the highest deficit since the COVID-19 pandemic,
representing an 8% increase compared to the previous fiscal year,
which saw a deficit of $1.695 trillion.

Content

The United States
Oil
The Federal Reserve

The United States

This deficit marks the third-largest in the country’s history, following the deficits of 2020 and 2021, where figures reached $3.132 trillion and $2.772 trillion, respectively, due to large spending on pandemic relief packages. One of the key factors contributing to the increase in the 2024 deficit is the rising interest costs on federal debt, which for the first time exceeded $1 trillion, reaching $1.133 trillion—a 29% increase. This makes it higher than spending on programs like Medicare and defense. Despite these figures, a Treasury official noted a slight decline in the average weighted interest rate on federal debt in September, the first drop since January 2022.

Oil

Oil prices drop sharply. Crude oil prices saw a significant decline in trading last Friday, falling by more than 2% due to increasing investor concerns about the future market outlook. These worries are mainly driven by a reduction in Chinese oil demand, one of the main factors influencing global prices. U.S. crude contracts fell by 2.22%, with the price per barrel reaching around $68.59. Meanwhile, Brent crude contracts dropped by 2.07%, recording $72.87 per barrel. This performance reflects the challenges facing the oil market, prompting investors to reassess their strategies amid growing pressures on demand.

The Federal Reserve

Bostic: The U.S. Federal Reserve will not rush to reach the neutral interest rate. Federal Reserve Board member Raphael Bostic made important remarks on Friday regarding interest rate policy. Bostic clarified that the Fed is not in a hurry to reach the “neutral interest rate,” which is the rate that neither stimulates nor slows down the economy. He stated that this neutral rate ranges between 3% and 3.5%. Bostic emphasized that the Federal Reserve will take cautious and measured steps in its upcoming decisions, taking into account the current economic conditions. He also stressed the need to adjust the interest rate in response to changing economic risks facing the country.

The United States records a budget deficit of $1.8 trillion.

The United States records a budget deficit of $1.8 trillion.

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