US Treasury to borrow record $3 trillion in second quarter

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US Treasury to borrow record $3 trillion in second quarter

Late on Monday, the 4th of May 2020, the US Treasury Department had issued a statement saying that the US Treasury had been brewing off a plan to borrow a record $3 trillion over the second fiscal quarter of the year ending on June 30th, pointing towards a tattering fiscal consequence of the pandemic outbreak in the United States.

Besides, in its Monday’s (May 4th) statement, the US Treasury had also added that it would likely to borrow a jawdropping total of $2.999 trillion over the second quarter of the year, nearly $3.055 trillion higher than its previous forecast.

On top of that, latest announcement from the US Treasury Department comes over the heels of fresh media reports that the top officials of Washington and Beijing had been trading barbs over the origin of the pathogen that led to the global-scale pandemic outbreak, while on Sunday (May 3rd), the US secretary of State Mike Pompeo was quoted saying that the United States had stark evidence to believe that the pathogen was crafted in a Wuhan laboratory, a day after the US President Donald Trump had also accused China of playing an active role behind the spread of the pandemic.

In tandem, citing that the US Treasury’s net borrowing was $1.28 trillion over the past fiscal year, a top Treasury official said on Monday (May 4th), “It is larger than what we would typically do in a year”.