US Deficit Hits Record, Markets React

The U.S. Government's budget deficit for the first five months of fiscal year 2025 has reached a record $1.15 trillion, a significant 38% increase compared to the same period in 2024. February alone saw a $307 billion deficit, driven by higher spending on interest payments, Social Security, and Medicare. Despite record revenues for the month, expenditures far exceeded them, highlighting ongoing fiscal challenges. The market reacted swiftly to this news, with notable declines in Bitcoin and Ethereum prices, signaling investor concerns and a flight towards more stable cryptocurrencies like Tether and USD Coin. President Trump, in his first month back in office, has prioritized fiscal reforms, including the creation of a Department of Government Efficiency led by Elon Musk, though immediate impacts are not yet visible. The deficit is exacerbated by efforts to extend tax cuts and manage the national debt, which has reached $36.2 trillion.