US Treasury Lifts Quarterly Borrowing Estimate to $444 Billion
- Department boosts estimate by $262 billion amid Fed tightening
- Fed portfolio runoff forcing Treasury to issue more to public
The U.S. Treasury building in Washington, D.C.
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The US Treasury ramped up its estimate of federal borrowing for the three months through September after the Federal Reserve’s balance-sheet runoff plan increased its need to tap the private sector for financing.
The Treasury Department boosted the quarterly borrowing estimate by about $262 billion, a release in Washington showed on Monday. The change reflects in part the Treasury having left out, back in May, any assumption for the Fed’s scaling back its holdings of Treasuries -- in advance of the formal Fed announcement. The Fed’s runoff began in June.