Federal Reserve Reverse Repo Use Hits Lowest Since 2021

Published on Aug 19, 2025.
Federal Reserve Reverse Repo Use Hits Lowest Since 2021

The Federal Reserve's use of overnight reverse repos has decreased to $22.344 billion, marking the lowest level since 2021. This notable decline raises pressing concerns regarding liquidity in the financial system and may suggest shifts in the central bank's approach to interest rate policies moving forward.

As the Federal Reserve navigates the challenges of maintaining economic stability while managing inflation, this drop in reverse repo usage could indicate a tightening of market liquidity. Analysts are closely monitoring these trends, as they may foreshadow changes that affect global markets and investor sentiment.

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