Definition
The US government's main checking account, held at the Federal Reserve.
The story
Taxes and money raised from selling Treasuries flow in; government payments flow out. When the account balance rises, money is drained from the banking system's reserves, and when it falls, money flows back. Around debt-limit standoffs, the balance can swing sharply.
Why markets watch it
Big swings in the TGA can tighten or loosen money-market conditions without the Fed doing anything.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms