U.S. Treasury Raises Borrowing Estimate Amid Debt Ceiling Crisis

The U.S. Treasury has revised its borrowing estimate for the second quarter upwards, increasing by $391 billion compared to projections from February. This adjustment is due to Congress’s delay in raising the debt ceiling, leading to lower-than-expected initial cash reserves at the beginning of the quarter. Excluding this initial reserve impact, the borrowing estimate has actually shrunk by $53 billion since February. Analysis by Zerohedge suggests that despite political turmoil, government efficiency is improving. Total revenue surpassed last year’s figures, while expenditures remain within a historically low range.