US Treasury Securities Issuance, Source: MacroMicro
TGA, Source: Saint Louis FED
Treasury securities issuance has been reduced by $74 billion as of March 18, 2025. At the same time, the TGA (Treasury General Account), which is the U.S. government’s checking account, has decreased by $81 billion.
Now, the U.S. government is reducing the amount of money it borrows from the money market. This may be one of the efforts to manage the economy and keep it from falling into recession. The government is spending money to inject liquidity into the economy through banks’ reserves. In the short term, this may help soften the economy, but in the long term, it could contribute to higher inflation.
The Fed seems to be doing its best to keep the economy going while preventing higher inflation through various tools, excluding the Fed rate. President Trump may have very different ideas, but they still lack a reasonable basis in economic matters. As Trump’s acknowledgment of harsh economic realities is delayed, the economy may face bigger potential risks.
This post is also published on Medium on March 20, 2025, by the same author.
Posted Using INLEO
Congratulations @windblue! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 100 upvotes.
Your next target is to reach 200 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOP