The good news is that this is an improvement on last year when the deficit was $1.6 trillion for the first 10 months of the 2023 fiscal year.
The bad news is that high debt interest is still causing massive problems. See the following graphic from the US Treasury:
There are three possible solutions to this:
a) grow the economy at a faster rate so tax receipts surge
b) cut spending
c) hope for an interest rate cut so debt interest payments come down.
It's hard to cut spending with an ageing population - that social security bill will only get bigger.
In addition the defence spending bill has soared as the US supplies arms to both Ukraine and Israel. An end to those wars will help.
The Biden administration has been trying to grow the economy, but it has merely kept pace with the increased spending.
So that leaves debt interest. If Trump gets elected, expect ferocious pressure on the Federal Reserve to cut interest rates regardless of what is happening to inflation. A Harris administration might do the same; Harris is not as old school as Biden about not interfering with the Fed.
If interest rates come down before inflation is defeated, then expect inflation to start surging worldwide.
