U.S. Trade Deficit Hit Record $61 Bln. in February

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he U.S. trade deficit rose to an all-time high of $61 billion in February, the Commerce Department reported Tuesday.

The figure topped the previous record set in November of $59.4 billion, and exceeded analysts’ projections of $59 billion, Bloomberg reported.

Trucks are used both to deliver imports to local stores and to move exports from factories to airplanes or ships for overseas shipment.

The figures came out two days after former Federal Reserve Chairman Paul Volcker wrote an opinion piece in the Washington Post warning that continued trade deficits could have long-term economic consequences in the United States. Volcker was the Fed chairman from 1979-1987.

The trade deficit could boost other currencies against the dollar and could lead to Congressional efforts to threaten China with tarriffs to stop pegging its currency to the U.S. dollar, Bloomberg said.

Imports rose 1.6% in February to $161.5 billion, led by industrial supplies and materials, including oil, steel, chemicals, natural gas and pulpwood, Commerce said.

The trade gap widened 4.3% from January, despite a 1% in exports to a record $100.5 billion, the department reported.