Treasury says borrowing needs increased by $262 billion

By FATIMA HUSSEIN
Associated Press

WASHINGTON (AP) — The Treasury Department is seeking to borrow $444 billion in the current quarter through September as the Federal Reserve tightens its portfolio. Figures released Monday by the department show that to be a $262 billion increase compared to estimates announced in May, a sign that the federal government will need to be more reliant on debt. A Treasury official told reporters on the condition of anonymity that the department was now expecting to collect less in taxes than initially forecast. The additional debt during the July to September quarter is also due in part to the Fed’s decision in May to scale back its holdings of Treasury notes, which caused the government to rely on private and foreign investors.