US Treasury faces cash shortage within weeks unless debt limit raised

The Treasury Department may issue $600 billion-$700 billion in T-bills within six to eight weeks of a debt-ceiling deal, according to Goldman Sachs. This move is necessary to replenish the Treasury's cash balance, which has been depleted due to the pandemic. However, this could drain liquidity out of financial markets in a short period of time, which could have an equivalent impact on the economy as a Federal Reserve rate hike of 25 basis points, according to Bank of America analysts.