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Reverse repo has dropped to all time low levels. bascially there is no money in the kitty.

It is like $57.49 billion which means the Federal Reserve has very little control right now.

It is a sign of tightening liquidity, aka no money, and it will have to respond in one of two ways

1) by lowering interest rates

2) or restarting quantitative easing to inject money into the economy.

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dabbicus_finch

Can't they reduce bank reserves too?

Zexia

Let’s goooooooooooo

Otis Vader

Or 3. Powell can continue the deliberate destruction of US economy to prevent Trump & Americans from succeeding.

Skittle1

This isn’t entirely accurate. Thank goodness for ChatGPT! a 4-year low in the Fed’s Overnight Reverse Repo (ON RRP) usage does not automatically mean the Fed will start “printing money” again. Here’s why: ⸻ 1. Low RRP = less excess cash to park, not necessarily a shortage • The RRP facility is a parking lot for surplus liquidity. • When it’s high → banks and money funds have more cash than they can put to work elsewhere. • When it’s low → that cash is now invested in things like Treasury bills or short-term lending, which often means the market is functioning normally.

Mr. Nice Guy

Covid was a money machine 💵💵💵

Fiat Turds

Like Vegas vacation - rate cut, I won 40%, rate cut, I won 40%, QE we all win in btc

Maine McEachern

After the extreme liquidity highs hit in September 2021, when money parked in the Reverse Repo facility peaked, there was a 20% drop by September 2022 as QT took hold. Since then there hasn't been much additional QT or QE; Fed Net Liquidity has been ranging within a ~10% band the last 3 years. It's not immediately clear why the RRF reserves peaked at the start of 2023 and have been steadily declining since. Perhaps there's a multi-year delay in the effects of QT forcing banks to drain the RRF? In any event, the low RRF reserves suggest a lack of liquidity in the financial system and that QT will have to give way to QE soon.

Feisty Oldman

Lowering interest rates IS money printing. All currency is 'loaned' into existence. Banks don't lend their money. They 'loan' the 'borrower' their own credit issued in the form of debt notes. All 'loans' from NA banks are the issuance of new currency.

CleverAussie1

DXY JUST SHOT UP almost 2% in space of only 15 minutes! 86 BITCOIN traded in just one minute, 15 minutes ago, at same time DXY stated to shoot up. BTC/ETH DOWN 3% today.