NS: MARTIN CRUTSINGER, Associated Press Posted: Posted August 4, 2021 / 8:23 am CDT / Has been updated: August 4, 2021 / 8:23 am CDT File-On May 7, 2021, Treasury Secretary Janet Yellen of File Photo spoke at a press conference at the White House in Washington. The Treasury announced on Wednesday, August 4, that
NS: MARTIN CRUTSINGER, Associated Press
Posted: Posted / Has been updated:
Washington (AP) — Treasury will spend $ 126 billion on Wednesday to fund the government in a series of auctions next week by adopting emergency measures to ensure that the newly imposed debt limits are not exceeded. Announced that it will be procured.
The Treasury’s announcement, which is part of the Treasury’s quarterly refund operations, raises $ 126 billion from three-year and ten-year bonds and a 30-year bond auction at an auction from Tuesday to next Wednesday. Will be done.
These auctions raise $ 58.6 billion in debt repayment requirements for upcoming Treasury securities and bonds, and raise about $ 67.4 billion in new cash to keep the government running. To do.
The government’s debt cap, which had been suspended for two years, came into effect again on August 1 at $ 28.4 trillion. This is the level at which debt has been raised since the cap was suspended. During that period, the federal deficit reached a record $ 3.4 trillion last year as the government approved trillions of dollars in support for a pandemic economy.
Emergency measures employed by the Treasury include bookkeeping operations to free various civil servant pension funds from investment and free up more room for borrowing while still below debt limits. Once the impasse on approving higher debt limits is resolved, the funds will be returned to various accounts with all the lost interest.
Treasury Secretary Janet Yellen has called on Congress to promptly lift or suspend borrowing limits to avoid the threat of a government default. Yellen said it was “catastrophic.”
Treasury officials said Wednesday that anomalous funding problems caused by the pandemic made it difficult to predict when there would be no room for the government to use so-called “special measures” to avoid defaults. Said he didn’t have a quote for.
“Various factors exacerbated by increased uncertainty in payments and receipts related to the economic impact of the pandemic expose us to considerable uncertainty during the period in which special measures may continue,” said Federal Finance. Deputy Assistant Secretary Brian Smith said. Finances said in a statement.
In July, the Congressional Budget Office estimated that the Treasury could run out of mobile rooms in October or November. The need to deal with debt restrictions could be involved in the battle between Democrats and Republicans over the passage of pending infrastructure bills.
Senate minority leader Mitch McConnell, R-Ky. Said on July 21 that it suspected that the Republicans would vote to raise their debt limits.
Treasury announces $ 126 billion auction next week | WGN Radio 720
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