U.S. Posts $345B August Deficit, Net Interest at 3rd Largest Outlay, Gold and BTC Rise

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By James Van Straten , AI Boost | Edited by Oliver Knight Updated Sep 12, 2025, 9:16 a.m. Published Sep 12, 2025, 9:13 a.m. U.S. Department of the Treasury's Monthly Treasury Statement for August 2025 (U.S. Treasury) What to know : US collected $344B in revenue against $689B in outlays, leaving a $345B monthly deficit. Net interest payments reached $93B, ranking behind only Medicare and Social Security. Federal Reserve expected to cut rates in September by 25bps, but rising inflation risks could push yields higher. The US government posted a $345 billion deficit in August, with receipts of $344 billion overshadowed by $689 billion in spending. The largest outlays were Medicare at $141 billion and Social Security at $134 billion, but what stands out is net interest at $93 billion, now the third-largest expense. This highlights the growing pressure that rising borrowing costs are placing on federal finances. The Federal Reserve is expected to cut rates by 25 basis points in September, but history suggests it wont be that straight forward. In September 2024, the Fed eased policy by 100bps only to see yields on the long end move sharply higher. The 30 year Treasury jumped from 3.9% to 5%, and today sits at 4.7%. With recent data pointing to an acceleration in inflation , the risk is that cutting rates could fuel further price pressures. That would force yields higher , increase debt servicing costs and potentially deepen the fiscal hole, creating a challenging backdrop for policymakers and markets alike. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Markets are responding decisively. Gold has surged to new record highs, just below $3,670 per ounce, marking a year-to-date gain of almost 40%. Bitcoin is also gaining traction, climbing above $115,000 as investors search for alternatives in an environment where debt sustainability is becoming a bigger concern. Bitcoin Federal Reserve Gold AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Here are the 3 Things That Could Spoil Bitcoin's Rally toward $120K By Omkar Godbole , AI Boost | Edited by Parikshit Mishra 1 hour ago BTC's case for a rally to $120K strengthens with prices topping the 50-day SMA. But, at least three factors can play spoilsport. What to know : BTC's case for a rally to $120K strengthens with prices topping the 50-day SMA. BTC, however, is trading close to a "bull fatigue zone." The dollar index may have priced in Fed rate cuts. The downside in the 10-year Treasury yield could be limited. 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