Key Metrics
12.25
Heat Index-
Impact LevelMedium
-
Scope LevelNational
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Last Update2025-11-06
Key Impacts
Positive Impacts (6)
Negative Impacts (1)
Event Overview
This event highlights the Federal Reserve's use of monetary policy tools to maintain liquidity in the financial system, ensuring that banks can meet their short-term cash needs. The high volume of repurchase agreements indicates a significant demand for overnight funding, reflecting underlying market conditions and potential economic pressures.
Collect Records
Federal Reserve Injects $50.35 Billion Through Standing Repo Facility
On October 31, the Federal Reserve injected $50.35 billion into the U.S. financial system through repurchase agreements (repos) to ensure banks had enough cash to meet immediate requirements, such as settling transactions. This was the highest use of the Standing Repo Facility since its introduction in 2021. In a repo transaction, banks use securities like mortgages or bonds as collateral for overnight loans and repurchase them the next day. Henry Jennings, senior portfolio manager at Marcus Today, noted a 'short-term' credit crunch in the US banking sector on Friday, attributing it to stress in the system's plumbing at month-end.