Dollar Glut Drives Usage of Fed Reverse Repo Facility to Record
- Volume for facility climbed to $485.3 billion on Thursday
- Increase comes amid flood of cash into U.S. funding markets
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Demand for a key Federal Reserve facility used to help control short-term rates surged to the highest on record, accommodating a barrage of cash in search of a home.
Fifty participants on Thursday parked a total of $485.3 billion at the overnight reverse repurchase facility, in which counterparties like money-market funds can place cash with the central bank. That surpassed the previous record volume of $474.6 billion from Dec. 31, 2015, Fed Bank of New York data show, and was an increase from $450 billion on Wednesday.