The U.S. federal deficit for the first two months of the new budget year is adding up faster than last year's record deficit. Economists are concerned that ballooning deficits could push interest rates higher and increase the cost of borrowing for consumers and businesses, which would slow economic growth and threaten the fragile recovery. The Treasury Department said Thursday that the November deficit totaled $120.3 billion, less than analysts had expected and down from a $176.4 billion imbalance in October. It was a record 14th consecutive monthly deficit. Despite November's improvement from the previous month, the budget deficit is 5.7 percent higher than the first two months of the 2009 budget year, when it hit a record $1.42 trillion. The Obama administration expects the 2010 deficit will set a new record high of $1.5 trillion.
