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Treasury buyback plan draws scrutiny as rainy-day fund cash shrinks

MarketWatch reports one analyst said the approach would reduce Treasury’s cash on deposit rather than deliver a new market stimulus.

Reported · Written up by our desk · Economy

The U.S. Treasury’s plan to use its rainy-day fund for stock buybacks is drawing scrutiny, with analysts arguing it is not likely to function as a major market-moving catalyst.

MarketWatch reports that one analyst said the move does not change underlying policy or market conditions, adding that it would primarily reduce the cash the Treasury keeps on deposit.

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