President Trump’s Treasury Department predicted in a new report Monday that the U.S. government was on track to borrow the most money since the 2008 financial crisis as the federal deficit is projected to hit $1 trillion by next year, reports The LA Times.
The department expects to issue $329 billion in net marketable debt between July through the end of September, the fourth-largest total for that quarter on record and higher than the $273 billion estimated in April, Treasury said in a report Monday.
Bloomberg reports that the department also predicted it needed to borrow another $440 billion between October and the end of the year. The total $769 billion comes in at the highest borrowing estimate since $1.1 trillion between July and December of 2008 in the heart of the financial crisis.
The Hill adds:
The net marketable debt the Treasury expects to issue from July through September is also the fourth-largest total for that quarter and far higher than was estimated earlier this year.
Treasury estimated in April that the annual deficit would boom this year, rising to $833 billion from roughly $665 billion in 2017. The cumulative deficit for the fiscal year is already $41 billion higher than at the same point last year, according to the report. The Trump administration argues that the strong economy will soon boost government revenue and reduce the deficit.