U.S. Treasury General Account Reaches Approximately $1 Trillion, Highest Since April 2021

On May 3, The Kobeissi Letter reported that the U.S. government’s cash balance continues to rise: the U.S. Treasury General Account (TGA) has reached approximately $1 trillion, the highest level since April 2021. The TGA is the primary checking account for the U.S. government at the Federal Reserve, used for holding and disbursing federal financial funds. Over the past three weeks, the TGA balance has increased by $300 billion. This surge in balance is primarily driven by the spring tax season, as U.S. residents and businesses concentrated their annual tax payments in the weeks leading up to the April 15 deadline. As a result, the U.S. Treasury’s issuance of short-term government bonds last week was reduced by $35 billion compared to the same period in March, briefly causing the total U.S. federal debt to fall below $39 trillion. However, as the influx of fiscal funds into the TGA slows in the coming weeks, the issuance of short-term government bonds is expected to increase again, potentially accelerating the growth of U.S. debt.