Fed’s Reverse Repo Facility Usage Sinks Below $250 Billion
- Some 44 counterparties tap RRP, the fewest since June 2021
- Fed facility’s demand has tumbled from a peak of $2.6 trillion
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The amount of money investors park at a major Federal Reserve facility dropped below $250 billion for the first time since 2021.
Some 44 participants on Monday put a combined $239.4 billion at the Fed’s overnight reverse repurchase agreement facility, which is used by banks, government sponsored enterprises and money-market mutual funds to earn interest. It marks a steep decline from the record $2.554 trillion stashed on Dec. 30, 2022, according to New York Fed data. The 44 counterparties is the lowest since June 2021.