Fluctuations in the Treasury General Account and their effect on the Fed's balance sheet | Metals Mine

  • Fluctuations in the Treasury General Account and their effect on the Fed's balance sheet

    From federalreserve.gov

    The Treasury General Account (TGA) represents the US government's deposits held with the Federal Reserve. The TGA is used to facilitate payments from and to the government and thus provides important payment services to the government and the country. As illustrated in Figure 1, TGA balances have been volatile in recent years, with large declines during periods with a binding debt ceiling and large increases after the increase in the debt ceiling. When the TGA fluctuates, something else must adjust on the Fed's balance sheet for it to balance. The Fed supplies currency in the amount demanded by households and firms ... (full story)

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