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Explainer: U S Treasury s cash drawdown - and why markets care

The U.S. Treasury is due to run down a $1.6 trillion bank account at the Federal Reserve as government spending ramps up in the months ahead - a move some analysts warn may crush short-term money rates further and flood financial markets with cash.

U S Treasury s cash drawdown - and why markets care

U.S. Treasury’s cash drawdown - and why markets care Sujata Rao Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account Getting audio file . This translation has been automatically generated and has not been verified for accuracy. Full Disclaimer The U.S. Treasury is due to run down a $1.6 trillion bank account at the Federal Reserve as government spending ramps up in the months ahead - a move some analysts warn may crush short-term money rates further and flood financial markets with cash. The Treasury said recently it would halve its extraordinarily large balance at the so-called Treasury General Account (TGA) by April and cut it to $500 billion by the end of June.

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