US National Debt Soars to $32.3 Trillion as Fiscal Hole Threatens America's Growth
The US national debt has surged by $851 billion in just one month, reaching a staggering $32.32 trillion, according to the Treasury Department. This increase is due to a combination of marketable and nonmarketable Treasury securities. The Treasury Department has been selling large amounts of Treasury bills and Cash Management bills to refill its checking account, known as the Treasury General Account (TGA). However, this process drains liquidity from the markets, which is further compounded by the Federal Reserve's quantitative tightening (QT) measures. The Treasury expects to borrow an additional $733 billion in marketable securities in the coming months to reach a TGA balance of $600 billion by the end of September. Despite this flood of new issuance, the Treasury market has remained relatively calm, with short-term yields reflecting expectations of rate hikes and long-term yields indicating anticipation of rate cuts and a return to 2% inflation.