3,882
edits
Liquidity: Difference between revisions
→Treasury TGA
No edit summary |
|||
| Line 28: | Line 28: | ||
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 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. | 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. | ||
* TGA currently has $490 billion, it has come down almost $500 billion since mid-2022. | |||
* Due to the debt limit not yet being solved in the US, the TGA is expected to continue declining in the short term. Adding liquidity to reserves and markets. | |||
* | * | ||