Fed’s Reverse Repo Pool Runs Dry: Is the U.S. Entering a Liquidity Crunch?

TLDR: Reverse repo balances plunge below $100B, signaling the end of post-pandemic liquidity. Standing Repo Facility use climbs as market participants seek short-term funding. Tightening liquidity could trigger volatility across equities, bonds, and crypto assets. Analysts warn QT may be nearing its practical limits as reserves approach 2019 levels. A sharp decline in the Federal [...]

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