US Plans Borrowing $362 Billion In Oct-Dec Quarter - Treasury

http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201011011514dowjonesdjonline000259&title=us-plans-borrowing-362-billion-in-oct-dec-quarter-treasury

US Plans Borrowing $362 Billion In Oct-Dec Quarter - Treasury


By Jeff Bater and Meena Thiruvengadam, Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The U.S. plans borrowing nearly $800 billion over
a six-month period after running up record budget deficits during the past
two fiscal years.

The Treasury Department on Monday estimated it would borrow $362 billion
October through December, down from its August forecast of $380 billion
for the quarter.

Treasury expects to borrow $431 billion for the next quarter, January
through March.

During July-September 2010, Treasury issued $396 billion in debt.

The U.S. federal government ran its second highest deficit ever in fiscal
2010, which ended Sept. 30. Government spending exceeded revenue by $1.294
trillion. The largest deficit on record is $1.416 trillion, in fiscal
2009, when the government's bills piled up because of two wars, the Wall
Street financial crisis and a recession that cut tax receipts.

Alan Krueger, Treasury's assistant secretary for economic policy, said the
deficit is expected to decline significantly over the next few years.

The economy is struggling slowly out of recession. Gross domestic product
grew in July through September by a modest 2%, a little higher than its
1.7% pace in the second quarter. Unemployment is high, restraining
consumer spending.

"The economy is healing and the expansion is expected to strengthen,"
Krueger said. "However, risks remain."

-By Jeff Bater, Dow Jones Newswires; 202 862 9249; jeff.bater-twM2Yer8+e9Wk0Htik3J/[email protected]


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