US Treasury Cash Pile Drops to Lowest Since 2017

The transcript discusses the low cash balance of the U.S. Treasury, which is significantly below the usual $500 billion, currently at $38.8 billion. This situation raises concerns about the Treasury's ability to meet its financial obligations, including interest payments and federal salaries. The potential for a debt default is explored, with considerations on what payments might be delayed, such as federal salaries and Social Security, while prioritizing maturing treasuries. The Treasury is assessing which payments can be postponed to manage the cash shortfall.

What is the average cash balance that the Treasury likes to keep at the Fed?

What amount of expenses does the Treasury have to pay according to the text?

What are some potential consequences if the Treasury runs short of cash?

What actions might the Treasury take if they face a debt default situation?

What has the Treasury asked federal agencies regarding payments?