The federal government is on pace to add more than $2 trillion to the national debt during the 2025 fiscal year

During October , the first month of the 2025 fiscal year , the federal deficit was more than a quarter of a trillion dollars.

The 2024 fiscal year ended on September 30 with the FY’s total deficit coming in at $1.8 trillion .

Federal spending has trended up since the third quarter of 2023 , once again accelerating overall growth in the debt.

As deficits grow, the Treasury will call upon the Fed to buy up more bonds to push down yields.

Rising yields suggest many investors expect more price inflation.