According to Jinshi, the US budget deficit widened in the six months ending in March of fiscal year 2024, and rising debt servicing costs were a key factor in the deficit. The budget deficit in the first half of the year reached $1.07 trillion, and after adjustments, the gap widened by 4% from the same period last year. The deficit in March was $236 billion, smaller than the same period last year. The interest burden on outstanding debt is the biggest reason for the widening deficit. The interest cost in the first half of this fiscal year was $522 billion, up 36% from 2023. The Federal Reserve's aggressive interest rate hikes have increased the cost of debt and increased the burden on the US budget. As of the end of March, the weighted average interest rate on outstanding US interest-bearing government debt was 3.22%, the highest level since April 2010, up about 65 basis points from the same period last year.
