Stocks And Crypto May Crash Within Weeks Of Debt-Ceiling Deal; Here's Why
As per Goldman Sachs, the US Treasury Department expects to issue $600-$700 billion in Treasury bills weeks after the debt ceiling deal. Treasury Secretary Janet Yellen warned that the US Treasury will run out of funds by June 1. The Treasury General Account fell to $57 billion from $316 billion earlier in May, with the opening balance of $636 billion this fiscal year. advertisement Meanwhile, President Joe Biden and Republicans have not reached a deal after two days of meeting. House Speaker Kevin McCarthy is confident about a deal before the June 1 deadline. President Biden doesn’t agree to spending cuts in the federal budget and Republicans rejected Biden’s push for new taxes. Goldman Sachs expects $1 trillion in T-bills this year to restore the US Treasury’s cash balance. Bank reserves would drop by $500 billion due to T-bills, fall in bank deposits, and the Fed rate hikes. US Fed officials are planning to raise interest...