🚀🚀🚀 billions of dollars will be injected into the American economy and will benefit risk markets🚀🚀🚀
The United States Department of the Treasury recently announced extraordinary measures to continue honoring its financial commitments after reaching the public debt ceiling. In a letter to Congress, Treasury Secretary Janet Yellen informed about the temporary suspension of debt issuance and the interruption of investments in the Public Service Retirement and Disability Fund (CSRDF) until June 5 of this year.
With the suspension of the debt ceiling, the Treasury resumed the issuance of bonds, planning total borrowings of US$ 726 billion in the April to June quarter, aiming for a cash balance of US$ 550 billion by the end of June.
However, Federal Reserve officials expressed concern about possible upward pressures on short-term money market rates due to additional Treasury bond issuance to replenish the Treasury General Account (TGA) balance. This pressure could lead to a decline in the use of reverse repurchase facilities.
These measures and concerns reflect the ongoing efforts of the U.S. government to manage its financial obligations and the potential impact on risk markets.