
July Deficit Hits Record $432 Billion, Pushing Fiscal 2026 Past All of 2025
The federal government ran a record $432.3 billion deficit in July 2026, pushing the fiscal 2026 shortfall past $1.799 trillion, more than all of fiscal 2025 combined.
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The federal government ran a record $432.3 billion deficit in July 2026, pushing the fiscal 2026 shortfall past $1.799 trillion, more than all of fiscal 2025 combined.

U.S. retail and food services sales fell 0.6 percent in July to $763.6 billion, the largest monthly decline since May 2025, weakening the case for a September Fed rate increase.

Treasury sold $25 billion of 30-year bonds at 5.216 percent on August 13, the highest yield on long-dated federal debt since 2001, as bid-to-cover slipped to 2.39.

Consumer prices rose 0.1 percent in July and 3.4 percent over 12 months. Core inflation slowed to 2.5 percent, its softest annual reading of the past year.

Treasury sold $58 billion of three-year notes at a 4.291 percent high yield on August 11, the highest since February 2025, yet demand was the strongest in nine months.

Households expect 3.6% inflation over the next year, the New York Fed’s July survey shows, with three-year and five-year readings flat ahead of Wednesday’s CPI report.
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