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The US posted a record $145 billion budget deficit in December
The US Treasury Department said on Tuesday, January 13, that the government recorded a budget deficit of $145 billion in December, a 67% increase, or $58 billion, from the previous year. This was due to record spending, inflated by calendar changes that affected the payment dates for some benefits and revenues.
The report showed that revenue growth from tariffs imposed by President Donald Trump may have plateaued, with net customs revenue for December totaling $27.9 billion, down from the $30 billion range of recent months, but significantly higher than the $6.8 billion recorded in December 2024.
Net customs revenue for the first three months of fiscal year 2026, which began on October 1, reached $90 billion, compared to $20.8 billion in the same period of the previous year.
President Trump welcomed the December inflation data released on Tuesday, saying it supported his efforts to get Federal Reserve Chairman Jerome Powell to cut interest rates.
The closely watched core consumer price index came in at 2.6%, below the 2.7% expected by markets. The overall annual inflation rate was 2.7%, the same as in November.
"We have very low inflation," President Trump told reporters before departing for Detroit. "That should give 'Powell, who's way behind the times, the opportunity to make a big, beautiful rate cut."
Earlier in the day, President Trump posted on social media that the inflation data meant Federal Reserve Chair Powell "should cut interest rates substantially."
