fed fomc Markets

A ‘Hawkish Cut’ From A ‘Derelict’ Fed? What To Expect From The October FOMC

Will it be "three and out"?

Will it be "three and out"?
This content has been archived. Log in or Subscribe for full access to thousands of archived articles.

1 comment on “A ‘Hawkish Cut’ From A ‘Derelict’ Fed? What To Expect From The October FOMC

  1. vicissitude

    Related topics: “Total Public Debt Cash Redemptions Withdrawn from Federal Reserve Acct” —

    Apparently, Withdrawals represent money spent by the federal government through each of various agencies and programs.

    T3B | (Adjustment of Public Debt Transactions to Cash Basis): This table converts sales and repayments of debt into a cash line item showing their impact on the Treasury’s Federal Reserve Account in Table II:

    Not all debt issued by the U.S. government is subject to the Congressionally-mandated “debt limit.” By law, certain types of debt are exempt from the limit, like debt held by a Treasury subsidiary, the Federal Financing Bank.

    Table III C takes the total public debt outstanding – the sum of debt held by investors and internal governmental I.O.U.s – and adjusts it by subtracting exempt debt types like the Federal Financing Bank. The total public debt is calculated in the first two line items, by adding up debt held by the public and intragovernmental holdings. This total is then decreased by exempt holdings listed below, such as the Federal Financing Bank, to arrive at the total debt subject to the debt limit in the bottom of the table. The prevailing debt limit is listed below that total, showing how close the government is to breaching the limit. __ The data can be accessed in Treasury.io by querying table “T3C” – short for Table III C

    DAILY TREASURY STATEMENT
    Cash and debt operations of the United States Treasury
    Thursday, October 24, 2019

    TABLE I Operating Cash Balance
    Federal Reserve Account

    TABLE II Deposits and Withdrawals of Operating Cash
    Federal Reserve Earnings
    Total Federal Reserve Account
    Transfers from Federal Reserve Account

    TABLE III-B Adjustment of Public Debt Transactions to Cash Basis
    Deposited in Federal Reserve Account
    Withdrawn from Federal Reserve Acct.

    TABLE III-C Debt Subject to Limit

    Total Public Debt
    Subject to Limit 22.897 Trillion (oh but wait, what about the $21.988 trillion limit? )

    *Statutory debt limit temporarily suspended through July 31, 2021

    https://fsapps.fiscal.treasury.gov/dts/files/19102400.txt

    See: Updated August 29, 2019

    The limit was reset on March 2, 2019, at $21.988 trillion to accommodate federal obligations during the suspension period. On March 4, 2019, Treasury Secretary Steven Mnuchin invoked extraordinary authorities. As noted above, the 2019 debt limit episode was resolved on August 2,
    2019 with enactment of the Bipartisan Budget Act of 2019 (BBA 2019; P.L. 116-37; H.R. 3877), which suspended the debt limit until July 31, 2021.

    https://fas.org/sgp/crs/misc/R43389.pdf

    So, after that confusion, it’s interesting to look at lots of charts @ economagic, but I’m not sure their charts are generated by data @ FRED … so working on that. Nonetheless, looks like some strange things going on with cash. Economagic has charts that show trends in TABLE III-C Debt Subject to Limit here:

    http://www.economagic.com/em-cgi/data.exe/TreasDTS/day-TIII-C06@@wklysum

    What does this imply about the debt ceiling and the Fed lower rates — and how does this fit into the trump balanced budget? Duh … Do we have an accountant anywhere that can explain this to 3rd graders?

Leave a Reply to vicissitude Cancel reply

Skip to toolbar