U.S. Treasury increases Q2 borrowing estimate due to COVID-19 response

The U.S. Treasury said on Monday it plans to borrow $463 billion in the second quarter, more than the February estimate of $95 billion, as it increases spending in response to COVID-19. The second-quarter estimate assumes an end-June cash balance of $800 billion, the Treasury said in a statement. It comes after the Treasury in February slashed its borrowing projections for the first and second quarters as part of a plan to reduce its cash balance.

The Treasury said it issued $401 billion in net debt in the first quarter, ending the three-month period with a cash balance of $1.122 trillion. It expects to borrow $821 billion in the July to September quarter, assuming an end-of-September cash balance of $750 billion


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NY Fed's Williams not concerned about inflation getting too high

Fiscal support, along with vaccinations, is helping the U.S. economy to recover, but it is unlikely that the boom will lead to inflation that is unsustainably high, New York Federal Reserve Bank President John Williams said on Monday.

The Fed’s goal is to anchor inflation expectations at 2%, and the Fed has the tools needed to respond if inflation does get too high as the economy comes back from the crisis caused by the coronavirus pandemic, Williams said during a virtual discussion as part of the Women in Housing and Finance 2021 Annual Symposium.