FX.co ★ U.S. Federal Budget Deficit Narrows to $145 Billion in December

In a noteworthy fiscal development, the U.S. Federal Budget Balance improved in December 2025, marking a significant reduction in the deficit. The latest figures, updated on January 13, 2026, reveal that the federal budget deficit has diminished to $145 billion, a substantial decrease from the $173 billion recorded in November.

The $28 billion reduction signifies a positive shift in the fiscal landscape, potentially reflecting stronger revenue inflows or more controlled government spending. Stakeholders and analysts are eyeing these numbers closely, as they could indicate a broader trend of fiscal improvement as the new year unfolds.

These developments bode well for the U.S. economy, potentially boosting investor confidence and influencing forthcoming fiscal policies. The narrowing deficit also offers a glimpse of optimism for financial markets and policymakers, seeking a more balanced budgetary framework. As the year progresses, the focus will likely remain on sustaining this trajectory and addressing underlying fiscal challenges.