The Fed's Refill of the TGA Account Could Present a Problem

The last three times we ran down the TGA and then refilled it, that would be August of 2019, late December of 2021. The other time we ran up a big amount of borrowing and drained the financial system of a lot of money was COVID in March and April of 2020. So what I'm trying to say is as we refill the TGA account, it is a drain of liquidity if it comes from money within the financial system out of it. If it comes from a drop in the RRP, then it isn't. We should have a better idea of how this is going to play out over the next week or so.