Fed Reverse Repo Facility Balances Sink Below $100 Billion
- Forty counterparties parked $98.4 billion at the central bank
- Officials this week lowered the RRP offering rate to 4.25%
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The amount of money investors park at a major Federal Reserve facility dropped below $100 billion for the first time since 2021 after policymakers adjusted the parameters this week.
Some 40 participants on Friday put a combined $98.4 billion at the Fed’s overnight reverse repurchase agreement facility, known as the RRP, which is used by banks, government-sponsored enterprises and money-market mutual funds to earn interest. It marks a steep decline from a record $2.55 trillion stashed on Dec. 30, 2022, according to New York Fed data.