US Treasury Cash Balance Shrinks to Alarming Levels Amid Debt Ceiling Battle

Treasury Secretary Janet Yellen listens during an open session of a Financial Stability Oversight Council meeting at the Department of the Treasury in Washington on April 21, 2023. Alex Wong/Getty Images

The U.S. Treasury cash balance inside its bank account at the Federal Reserve continues to shrink at an alarming level as the department attempts to prevent the federal government from defaulting.

According to the latest Daily Treasury Statement, the Treasury General Account (TGA) opening balance was $87.431 billion on May 16, down from about $143 billion on May 12. This represents a 40 percent decline and the lowest level since April 12.