Treasury Bails Out Fed

No surprise here, but timely, given that the Fed is running out of money.

WSJ: The Treasury Department Wednesday announced a financing program designed to provide cash for the Federal Reserve to use in the attempt to address liquidity pressures in the financial market. The Treasury Department announced the initiation of a temporary Supplementary Financing Program at the request of the Fed. “The program will consist of a series of Treasury bills, apart from Treasury’s current borrowing program, which will provide cash for use in the Federal Reserve initiatives,” Treasury said.

Translation: the government will borrow more money.  Treasury statement here.

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