Biden Debt-Bill Signing Set to Unleash Tsunami of US Debt Sales
- Treasury expected to sell $1 trillion or more of new debt
- Department ran down cash to keep making federal payments
President Joe Biden during a national address in the Oval Office of the White House in Washington, DC, on June 2.
Photographer: Jim Watson/AFP/Bloomberg
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President Joe Biden’s signature of legislation suspending the federal debt ceiling has given the Treasury Department the green light to resume net new debt issuance after months of disruption.
Ever since mid-January, when it hit the $31.4 trillion debt ceiling, the Treasury has been using special accounting measures to maintain payments on all federal obligations. There were just $33 billion of those left available as of May 31.