February federal budget deficit sets record

WASHINGTON (AP) -- The federal government's budget deficit grew by $222.5 billion in February, the largest one-month increase in history. Economists are forecasting the deficit for the year will be the biggest imbalance on record.

The Treasury Department says the February deficit surpassed the old record for any month, a $220.9 billion imbalance set in February 2010.

Through the first five months of this budget year, which began Oct. 1, the deficit totals $641.3 billion, 1.6 percent below the pace set last year.

However, economists are predicting the deficit for this year will exceed last year's imbalance. The Congressional Budget Office is forecasting a $1.5 trillion gap, giving the country a third straight year of $1 trillion-plus deficits.

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As of this posting all of the major financial markets are down sharply.