Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
Why the Fed Cares About the Treasury General Account
The Treasury General Account, or TGA, is the checking account the U.S. Treasury keeps at the Federal Reserve. Its balance swings by hundreds of billions of dollars, and those swings matter for bank reserves, money-market rates, and the Fed's balance-sheet plans. In this episode, Lucas and Luna explain how the TGA works, why the Fed watches it so closely, and how a near-$1 trillion balance could factor into Treasury buybacks and funding markets. They discuss the mechanics of the TGA, its impact on reserves and the repo market, and what the recent decline in the 10-year breakeven inflation…
The skinny
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