# LiquidityUpdate

There has been a lot of noise about liquidity in the United States, and many people think the country is heading toward another banking scare. That is not what is happening. The recent pressure showing up in short term markets is coming from the normal movement of government money combined with regular month end behavior from banks. Nothing in this picture suggests a systemwide crisis.
A big part of the story is the Treasury General Account. This account is where the government keeps its cash at the Federal Reserve. Whenever the Treasury collects taxes or sells new bonds, the money moves out o