Federal Government's Bank Account Depletes Rapidly as Default Deadline Approaches

The Treasury Department’s bank account at the Federal Reserve saw a sharp drop in cash earlier this week as lawmakers continue to negotiate over lifting the debt ceiling.

The Treasury General Account had $87.4 billion on Monday, down from $140 billion on Friday, according to the latest update.

That brings the cash balance to the lowest level since April 12, before tax payments to the IRS began filling up the Treasury’s coffers. The cash decline is also the biggest since March 1.

The Treasury General Account is used to pay for debt service on government bonds — preventing the US from defaulting — among the myriad other outlays like federal employee salaries.

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