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The massive stimulus to support the US economy. USA Through the coronavirus crisis it will cause the Treasury to borrow a record $ 3 trillion this quarter.
The department announced the total on Monday, which is actually $ 2 trillion.
“The increase in private net business loans is mainly due to the impact of the COVID-19 outbreak, including the costs of new legislation to help individuals and businesses, changes in tax revenue, including tax deferral individual and commercial from April to June through July, and an increase in the cash balance assumed at the end of the Treasury in June, “the department said in a statement.
In addition to that loan, the Treasury also said it anticipates another $ 677 billion in the third quarter. First quarter loans totaled $ 477 billion.
The red ink comes thanks to the multiple stimulus efforts that Congress has approved to resurrect an economy that was paralyzed in the midst of social distancing efforts to stop the spread of the virus. The allocations so far have totaled more than $ 2 trillion, and in the end one more package is expected to help the more than 30 million Americans who have reached the unemployment line, as well as thousands of other companies that have seen it evaporate. your income streams.
The Treasury Department is also supporting various loan programs for the Federal Reserve, which is leveraging Treasury guarantees in programs designed to provide another $ 2.2 trillion in funds for businesses and households.
Since March 1, the national debt has grown by $ 1.5 trillion to $ 24.9 trillion, an increase of 6.4%. The budget deficit through March, or the first six months of the fiscal year, totaled $ 744 billion, in pace to easily overshadow the largest deficit in the history of the United States.
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