|
Below is a chart and brief excerpt from today’s Market Situation Report written by Tier 1 Alpha. If you’re interested in learning more about the Hedgeye-Tier 1 Alpha partnership, there’s more information here. |
Today's educational concept will likely become a topical issue in the coming months as Janet Yellen spends down the TGA post-tax season. The Treasury General Account (TGA) is the principal cash account operated by the United States Department of the Treasury. It is used to handle all federal government receipts and disbursements.
Some key points about the Treasury General Account:
- Central account: The U.S. government's primary checking account consolidates its cash inflows and outflows.
- Receipts: All federal tax revenues, fees, federal agency payments, and other receipts are deposited into the TGA.
- Disbursements: The TGA is used to make payments for all federal government operations, including Social Security benefits, military salaries, interest on debt, and other expenses.
- Cash management: The TGA allows the Treasury to monitor and manage the government's cash position and borrowing needs on a daily basis.
- Banking system: The TGA comprises thousands of accounts at commercial banks and the Federal Reserve Banks to facilitate the movement of funds.
- Deficit financing: When expenditures exceed revenues, the Treasury issues debt to finance the deficit, with proceeds credited to the TGA.
In essence, the Treasury General Account acts as a centralized cash pool that receives all federal funds and disburses payments, allowing the government to efficiently manage its cash flows and financial operations on a real-time basis.
|
Learn more about the Market Situation Report written by Tier 1 Alpha. |
HELPFUL LINKS:
Join New Subscriber Orientation
New Conference: Hedgeye Live 2024 May 2-5
