Fed Reverse Repo Facility Use Tumbles to Fresh Low Since 2021
The Marriner S. Eccles Federal Reserve building in Washington.
Photographer: Andrew Harrer/BloombergDemand for a major Federal Reserve facility dropped to the lowest level in more than four years as investors and banks put money back to work as part of portfolio rebalancing after the end of the month.
Seventeen participants on Tuesday put a combined $21.07 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 on cash lent to the central bank.