Withholding tax growth kept fading in June, continuing a year long downtrend in withholding tax revenue growth. This trend went on while government spending exploded. It blew the monthly deficit out to $213 billion in June, a month where the budget is normally in balance due to quarterly tax collections. Treasury issuance is on a pace that is way above official government estimates. It is unsustainable without Fed monetization. And the trend will not improve for the foreseeable future.
This report examines the real time Daily Treasury Statement data that shows why the fiscal crisis is here now, and where the trends point over the rest of this year.
The data is incontrovertible. The Fed passed up an opportunity to act at last week’s FOMC meeting. It must act soon.
This report is only part of the story. We look at other aspects of both the supply issues and the demand side in other regular updates in this series.
Legacy subscribers (pre-April 2026), click here to download the report.
New Subscribers (since April 2026) You must be logged in to download the report. Click here to log in.
Subscribers Download Here: Federal Budget Report July 4, 2026 (Membership Required: Integrated Edge or Macroliquidity™)
The full 7 page report, with clear illustrative charts, explains the facts behind the numbers that matter and the fallacies behind the ones that don’t. Real numbers, real-time proprietary charts and tables. Backed by 57 years of independent analysis.
Access today’s and future Macroliquidity™ reports here.
Want to know more about Liquidity Trader’s Integrated Edge? Click here.