U.S. debt to surge by $1.4 trillion next quarter: Wells Fargo

The U.S. government is likely to increase its debt by $1.4 trillion in the second quarter, as it raises cash to finance stimulus that is meant to blunt the economic impact of the coronavirus pandemic, analysts at Wells Fargo said on Tuesday. President Donald Trump on Friday signed into law a $2.2 trillion aid package, the largest ever, to help offset the downturn caused by sweeping shutdowns aimed at containing the outbreak. This includes sending checks to Americans and rushing billions of dollars to medical providers on the front lines of the pandemic. “That’s really an immediate need for cash,” said Zachary Griffiths, an interest rate strategist at Wells Fargo in Charlotte, North Carolina. “It all comes together in heavy issuance needs as the Treasury steps in with this fiscal stimulus.”