3,882
edits
Liquidity: Difference between revisions
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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. | * TGA currently has $490 billion, it has come down almost $500 billion since mid-2022. <ref>https://fred.stlouisfed.org/series/WTREGEN</ref> | ||
* 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. | * 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. | ||