U.S. Borrows $145 Billion in December, Budget Deficit Narrows to $1.67 Trillion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: stocktwits
- Borrowing Situation: The U.S. borrowed $602 billion in the first three months of FY 2026, including $145 billion in December, indicating ongoing government funding needs that may impact future fiscal policy flexibility.
- Budget Deficit Change: The U.S. budget deficit for 2025 has narrowed to $1.67 trillion, the lowest in three years, partly due to the positive impact of Trump's tariff policies on customs revenue, highlighting the fiscal benefits of trade measures.
- Trade Deficit Improvement: The U.S. trade deficit fell 39% to $29.4 billion in October, the lowest since June 2009, with Trump attributing this to tariffs, which may influence future trade policy directions.
- Market Reaction: U.S. equities fell in after-hours trading on Tuesday, with the SPY ETF down 0.2%, reflecting cautious investor sentiment towards the economic data, which could affect short-term market dynamics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
