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Hi Tim,

The govt is spending an increased amount of $s beyond tax intake,
necessitating increased borrowing, and yes, by increasing the
availability of govt securities, the private sector has more default free
securities to hold. I think the increase in the Treasury balances is due to
spending delays and fewer firms taking advantage of govt relief efforts.

Dr. William Van Lear
Professor Emeritus
Economics Department
Belmont Abbey College



On Tue, Oct 13, 2020 at 12:19 PM Wunder, Tim <[log in to unmask]> wrote:

> Quick question, if anybody knows, why has the US treasury balances at the
> FED gone from averaging 380 billion to 1.7 trillion this year?  Is the US
> government intentionally floating bonds to give the markets investment
> quality debts?
>
>
> Timothy A Wunder
>
> Clinical Professor of Economics
>
> Department of Economics
>
>
>