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- U.S. National Debt Spikes by $359 Billion On 1st Day After Debt Ceiling Suspended. TGA Begins to Get Refilled, Draining Liquidity From Market
U.S. National Debt Spikes by $359 Billion On 1st Day After Debt Ceiling Suspended. TGA Begins to Get Refilled, Draining Liquidity From Market
by Wolf Richter Wolf Street
The Fed’s QT is happening for the first time simultaneously with the refilling of the TGA. Both draw liquidity from markets.
The Debt Ceiling Charade ended over the weekend when President Biden signed the “Fiscal Responsibility Act of 2023,” that suspends the debt ceiling through early 2025. A US default was “averted.” The ending of the charade is always known in advance: Congress will agree on a deal at the last minute, and the President will sign it, as it has been done for the 80th times since 1960. But the process of getting there can make you nervous. Then, after the Debt Ceiling Charade is over, we get a huge spike in the debt.