Capitalize Financial
No Result
View All Result
  • Home
  • World
  • Economy
  • Business
  • Markets
  • Real Estate
  • Cryptocurrency
Capitalize Financial
  • Home
  • World
  • Economy
  • Business
  • Markets
  • Real Estate
  • Cryptocurrency
No Result
View All Result
Capitalize Financial
No Result
View All Result
Home Markets

Explainer-What’s at stake for markets as debt ceiling looms

by capitalizefinancial
June 14, 2021
in Markets
0

The U.S. debt ceiling comes into effect at the end of July, putting pressure on the Treasury to reduce its cash balance ahead of the deadline. That means more injections of cash into a financial system already awash with liquidity, a scenario that could further sink short-term rates and cause undue distortion in the overnight repurchase market.

WHAT IS THE DEBT CEILING?

The debt ceiling is the maximum amount the U.S. government can borrow, as directed by Congress, to meet its financial obligations. When the ceiling is reached, the Treasury cannot issue any more bills, bonds, or notes. It can only pay bills through tax revenues.

Congress previously agreed to suspend the limit through July 31, at which point the Treasury has only a few months of “extraordinary measures” before lawmakers must either raise the amount, or face consequences of technical default.

WHAT CAN THE TREASURY DO AHEAD OF THAT?

Run down its cash. It has a target cash balance of $450 billion at the so-called Treasury General Account (TGA) on July 31. As of June 9, the Treasury’s cash balance was $674 billion, data from financial research firm Wrightson ICAP, down from $1.8 trillion last October.

Read more..

Previous Post

Biden open to Vladimir Putin proposal on swapping cybercriminals

Next Post

California’s homelessness crisis is at a tipping point. Will a $12B plan put a dent in it?

Next Post
California’s homelessness crisis is at a tipping point. Will a $12B plan put a dent in it?

California's homelessness crisis is at a tipping point. Will a $12B plan put a dent in it?

Search…

No Result
View All Result

Subscribe Us

By clicking on Subscribe, I confirm that I have read and agree to the terms set forth in the Privacy Policy and Terms of Service including Capitalize Financial’s ability to use and share my information and Capitalize Financial, or third-party companies and business partners, may send me offers for products and services at the email address I have provided. I understand that my information may be supplemented with additional information obtained from other sources.

Recent News

Most say nation on wrong track, including Dems: AP-NORC poll

Peaky Blinders: The True Story Behind Alfie’s Uncle Charles Solomons

Categories

  • Business
  • Cryptocurrency
  • Economy
  • entertainment
  • finance
  • Georgia
  • health
  • Markets
  • Music
  • Politics
  • Real Estate
  • receipe
  • Science
  • science
  • Sports
  • Sports
  • Tech
  • Travel
  • World

Site Navigation

  • Contact Us
  • Privacy Policy
  • Terms Of Service
  • Unsubscribe

Capitalize Financial, a news portal which provides the financial news global wide.

  • Contact Us
  • Privacy Policy
  • Terms Of Service
  • Unsubscribe

© 2021 Capitalize Financial All Rights Reserved

No Result
View All Result
  • Advertisement
  • Contact Us
  • Homepages
    • Home 1
    • Home 2
    • Home 3
    • Home 4
    • Home 5
  • World
  • Economy
  • Business
  • Markets
  • Real Estate

© 2021 Capitalize Financial All Rights Reserved