The U.S. Treasury Department cut its estimate for government borrowing in the current quarter by 43 percent largely because of reductions in a program for helping the Federal Reserve manage its balance sheet. Borrowing will total a net $276 billion from October through December, compared with a previous estimate of $486 billion, and it projects borrowing of $478 billion in the three months to March 31, the department said in a statement today in Washington. In the quarter that ended Sept. 30, the Treasury borrowed $393 billion compared with $406 billion projected three months ago. The Treasury is financing a budget deficit that may exceed $1 trillion for a second straight year, even as the economy starts to recover.
Treasury officials today declined to comment about when the country’s $12.1 trillion debt ceiling might be reached. Earlier estimates indicated the limit might be reached by December.
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