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Probably a little soon to tell, but the FED has been wary of economic weakness for a while. The numbers have been getting shakier for jobs. Hints of debt problems too. Now liquidity.
Something else to keep an eye on. I was hoping that the FED would get further along with QT.
Reuters says it was over $50 billion...I'm also seeing more news reports of subprime loans, ARMs making a comeback, credit card delinquincies, private credit/equity shenanigans and blowups, etc which gives me pause.
The Fed’s Standing Repo Facility lent a total of $50.35 billion on Friday to eligible financial firms in two separate availabilities, the highest-ever usage since the tool was put in place in 2021 to provide fast loans collateralized with Treasury or mortgage bonds. At the same time, financial firms also parked a considerable amount of cash on Fed books, with the reverse repo facility seeing inflows of $51.8 billion.
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Something else to keep an eye on. I was hoping that the FED would get further along with QT.
The Fed’s Standing Repo Facility lent a total of $50.35 billion on Friday to eligible financial firms in two separate availabilities, the highest-ever usage since the tool was put in place in 2021 to provide fast loans collateralized with Treasury or mortgage bonds. At the same time, financial firms also parked a considerable amount of cash on Fed books, with the reverse repo facility seeing inflows of $51.8 billion.
https://www.reuters.com/business/finance/banks-tap-fed-standing-repo-facility-record-numbers-amid-month-end-pressures-2025-10-31/