The U.S. Treasury cash balance inside its bank account at the Federal Reserve continues to shrink at an alarming level as the department attempts to prevent the federal government from defaulting.
According to the latest Daily Treasury Statement, the Treasury General Account (TGA) opening balance was $87.431 billion on May 16, down from about $143 billion on May 12. This represents a 40 percent decline and the lowest level since April 12.
At the beginning of the month, the Treasury’s cash balance was $316.381 billion, down roughly 72 percent.
Officials use the TGA to cover the debt service on government bonds, effectively stopping the United States from defaulting. It is also used to pay for a plethora of federal outlays, including employee salaries, and collect funds from the sale of Treasury debt….