Money Markets Seek Treasury Reply to $1.8 Trillion Question
- Record cash hoard, stimulus doubts cloud bill supply outlook
- Sharp Treasury cash drawdown could drive funding rates lower
Photographer: Kerem Uzel/Bloomberg
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The U.S. Treasury will soon provide some clues on what’s about to happen with the pile of cash towering over money markets.
The Treasury’s cash hoard at the Federal Reserve -- known as the Treasury General Account -- is close to a record $1.8 trillion. On Monday, officials will offer estimates of where they see it in three months’ time, and how much more short-term cash they expect to raise to help people and businesses through the pandemic. Trouble is, the Treasury’s numbers are riddled with uncertainties, starting with the timing of the hotly-debated stimulus package in Congress.