Treasury Department Reduces Q4 Borrowing Forecast Down To $776B, But Still Raises Eyebrows

The U.S. Treasury Department has lowered its estimate for federal borrowing in the fourth quarter to $776 billion, down from the previously predicted $852 billion.

Investors are breathing a sigh of relief with this cut, given their rising worries over the expanding fiscal deficit. However, even with this reduction, the forecasted amount remains an unprecedented borrowing figure for the calendar fourth quarter.