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Liquidity: Difference between revisions
→Treasury TGA
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* As an effect of QT, Bank reserves are also declining, they stand at 3.1 Trillions, it has declined$ trillion since November 2021, a 25% decline, | * As an effect of QT, Bank reserves are also declining, they stand at 3.1 Trillions, it has declined$ trillion since November 2021, a 25% decline, | ||
* It has been stable the last 3 months at $3 trillions, which could explain some of the financial easing that we saw in January 2023 <ref>https://fred.stlouisfed.org/series/TOTRESNS</ref> | * It has been stable the last 3 months at $3 trillions, which could explain some of the financial easing that we saw in January 2023 <ref>https://fred.stlouisfed.org/series/TOTRESNS</ref> | ||
* Bank reserves are still above the pre-pandemic level | * Bank reserves are still above the pre-pandemic level | ||
=== Reverse Repo === | === Reverse Repo === | ||
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=== Treasury TGA === | === Treasury TGA === | ||
The Treasury General Account (TGA) is an account held by the U.S. Department of the Treasury at the Federal Reserve Bank, into which all federal receipts are deposited and from which all federal payments are made. The TGA is essentially the checking account of the U.S. government, and it serves as a key tool for managing the government's daily cash flows. | |||
The TGA balance can fluctuate significantly over time, depending on a range of factors, such as the timing of tax collections and government spending. In recent years, the TGA has received increased attention as a result of debates around the federal debt ceiling, which can impact the government's ability to borrow funds and thus its cash balances in the TGA. | |||
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=== M2 === | === M2 === | ||