US Treasury seeks to borrow a record $3 trillion this quarter
Massive stimulus to support the U.S. economy through the coronavirus crisis will cause the Treasury to borrow a record $3 trillion this quarter.
The department on Monday announced the total, which is actually $2.999 trillion.
“The increase in privately-held net marketable borrowing is primarily driven by the impact of the COVID-19 outbreak, including expenditures from new legislation to assist individuals and businesses, changes to tax receipts including the deferral of individual and business taxes from April – June until July, and an increase in the assumed end-of-June Treasury cash balance,” the department said in a statement.
On top of that borrowing, the Treasury also said it anticipates another $677 billion in the third quarter. First-quarter borrowing totaled $477 billion.
The red ink comes thanks to multiple stimulus efforts Congress has passed to resuscitate an economy brought to a standstill amid social distancing efforts to halt the virus spread. …continued .
[Source: CNBC News]