johnjones2305 :
Yes, the Federal Reserve (as part of federal monetary policy) injected approximately $125 billion into the US banking system over the last five business days (late October to early November 2025) via its Standing Repo Facility. This was to address liquidity pressures, including month-end funding strains, declining bank reserves (down to about $2.8 trillion, a four-year low), and potential disruptions like a government shutdown risk, helping banks meet daily transaction needs and avert a credit crunch. Also understand that this is not federal money, this is insurance that the banks have paid into for years. The Standing Repo Facility (SRF), established by the Federal Reserve in July 2021, is a permanent backstop tool in U.S. money markets. It allows eligible institutions—like primary dealers and depository banks—to borrow cash overnight from the Fed by selling high-quality securities (such as U.S. Treasuries, agency debt, and mortgage-backed securities) as collateral, with an agreement to repurchase them the next day at a set rate. 0This repo mechanism helps maintain liquidity, prevent funding stress, and support smooth monetary policy implementation during market pressures.
2025-11-05 22:44:08