CNBC analysis indicates that the U.S.'s $2 trillion fiscal deficit and government bond yields exceeding 5% are becoming the biggest challenges facing the American economy. High borrowing costs are pressuring households and the federal government, threatening to exacerbate the government's debt problems. The 10-year U.S. Treasury yield has risen to 5.19%, and the 30-year fixed mortgage rate hovers around 7.5%, leading to a 4% decline in pending home sales in September, the largest monthly drop in three years. The analysis suggests that large federal debt issuance, the Iran war driving up oil prices, and investors demanding higher compensation are the main factors pushing up yields. Given the difficulty for both parties to agree on fiscal solutions after the midterm elections, resolving these issues could take several years. U.S. Treasury Secretary Scott Bessent had proposed a deficit target below 4% of GDP, but the deficit for fiscal year 2026 is projected to approach $2 trillion, accounting for 6.0-6.2% of GDP.