Since mid-September 2019, the U.S. Federal Reserve has been fighting to contain a liquidity crisis in the nation’s money markets that was caused in large part by excessive spending by the U.S. government.
That surge in spending was prompted by “the worst budget deal in history” in late-July 2019, which forced the U.S. Treasury Department to begin borrowing massive amounts of money to provide the additional funds that a bipartisan majority of U.S. politicians authorized to spend. Consequently, the public portion of the national debt has been increasing to keep pace, reaching crisis levels in mid-September 2019.
The chart below shows the
