US Federal Deficit Soars, Reaching Record High in June
The U.S. federal deficit nearly tripled in the first nine months of the fiscal year, reaching nearly $1.4 trillion, raising concerns about the country's rising debt levels. The deficit surge was attributed to increased government spending and a significant drop in tax revenues, with reduced investment gains and lower capital gains taxes contributing to the decline. Interest payments on the debt also rose by 25% compared to the previous year. Calls for fiscal restraint and a comprehensive approach to addressing the budget crisis have been made, as the ballooning deficit continues to spark political fights between Republicans and the White House. The Fitch bond rating agency has warned that the nation's AAA bond rating could be at risk due to "governance shortcomings" in tackling fiscal challenges.