How the Debt Ceiling Is Now Pouring Liquidity into Financial Markets, only to Suck it Back Out Very Fast Later this Year

Back on April 3, 2025, cash in the government’s checking account, the Treasury General Account (TGA) at the Federal Reserve Bank of New York, had plunged to $296 billion, from over $800 billion in mid-February. Then came the flood of tax receipts, and by April 16, the TGA balance had shot up to $639 billion...