U. S. Debt Update

U.S. Debt Ceiling Hike a Ways Off
by Wells Fargo Securities
wellsfargo.com
March 9: The nation’s borrowing limit has been suspended since November 2015, and on March 15 will reset to the total amount borrowed at that point in time, or roughly $20 trillion. Beginning on March 16, the Treasury will begin taking extraordinary measures to stay under the borrowing limit. These measures include suspending investments of the Thrift Savings Plan’s G Fund, the Exchange Stabilization Fund, the Civil Service Retirement and Disability Fund, and the Postal Service Retiree Health Benefits Fund, redeeming in advance securities held by the aforementioned funds, suspending the issuance of new State and Local Government Series securities and savings bonds, and exchanging Federal Financing Bank securities for an equal amount of Treasury securities. These extraordinary measures, combined with the influx of revenue from tax collections in April, will keep the Treasury under the debt limit and with enough cash on hand to continue funding the government’s existing obligations.
— Michael A. Brown

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