Why do people say that the end of the government shutdown in the United States will ease market Liquidity?

The U.S. Treasury maintains a funding account at the Federal Reserve, commonly referred to in the news as the TGA account.

The Ministry of Finance's sources of income mainly consist of two types: taxation and the issuance of government bonds.

Expenditures mainly go to the following five areas, except for paying interest on national debt, the other funds are all flowing into economic activities.

During the suspension period, all tax revenue continued as usual, except for the issuance of bonds which was affected. However, many of the expenditure items of the Ministry of Finance have been paused.

This has led to an increase in the balance of the TGA account at the U.S. Treasury during the shutdown.

Once the suspension ends and the outflow of funds from the Ministry of Finance returns to normal, it will inject liquidity into the market and alleviate the situation of liquidity exhaustion to some extent.