US budget deficit nearly doubles in December from year ago

WASHINGTON (AP) — The U.S. federal government's budget deficit rose from a year earlier for the second straight month, the latest sign of a rising financing gap.

The federal government's largest health care programs, Medicare and Medicaid, saw spending increase 5 percent and 6 percent, respectively.

The Fed is earning interest payments on its huge portfolio of Treasurys and mortgage-backed securities, purchased after the financial crisis in an effort to hold down interest rates.