SKN | U.S. Fiscal Deficit Surges to $14.18 Trillion Despite Relatively Low Unemployment
Bonds & Foreign Exchange The United States is facing a growing fiscal challenge: substantial government borrowing has continued despite an unemployment trend that has remained relatively contained. Data presented by The Kobeissi Letter show cumulative federal deficits since 2020 rising to approximately $14.18 trillion, while the seven-year average unemployment rate declined to 4.7%. The divergence highlights the importance of examining fiscal policy, government spending and debt-servicing costs independently of headline labor-market conditions. Fiscal Deficits Continue to Accumulate Despite Labor-Market Resilience The chart illustrates a sustained increase in cumulative U.S. fiscal deficits from 2020 through 2026. Over the same period, the seven-year average unemployment rate initially rose, subsequently declined, and then edged higher toward the end of the period shown. The reported decline of […]
