WASHINGTON (AP) — The federal deficit hit a record for October as the new budget year began where the old one ended, with the government awash in red ink.
The Treasury Department says the deficit for October totaled $176.4 billion, even higher than the $150 billion imbalance that economists expected.
The deficit for the 2009 budget year, which ended on Sept. 30, set an all-time record in dollar terms of $1.42 trillion. That was $958 billion above the 2008 deficit, the previous record holder.
Economists worry such deficits could push up interest rates, adding a further drag on the fragile economic recovery.
