U.S. deficit widens to $532 billion in first four months of fiscal 2024, as interest costs surge 37%

According to Jinshi, data from the U.S. Treasury Department showed that the U.S. budget deficit reached $532 billion in the first four months of fiscal year 2024, up 16% from the same period last year. In the four months ending in January, interest costs were $357 billion, a sharp increase of 37% from 2023. The Federal Reserve's aggressive interest rate hikes have increased debt costs and added to the burden on the U.S. budget. However, the deficit in January was smaller than the same period last year, mainly due to increased revenue. Treasury officials said the increase in revenue partly reflects a reduction in spending on an epidemic-era project last month compared with 2023.