RRPs coming down across all regional reserve banks, not just NY, now at lowest level since May '21 while reserves are also falling, and now both are paying lower rates on top of it all; even still, the Fed is paying $527 million daily to keep the system (barely) functioning… pic.twitter.com/jcopws39hy
— E.J. Antoni, Ph.D. (@RealEJAntoni) October 26, 2024
BTFP is now below $60 billion and that will all have to be repaid by mid-Mar at the latest, though much of it will almost certainly come due before that; the Fed merely papered over a problem w/ this facility and we’re still likely headed to a repo crisis if nothing changes:
BTFP is now below $60 billion and that will all have to be repaid by mid-Mar at the latest, though much of it will almost certainly come due before that; the Fed merely papered over a problem w/ this facility and we're still likely headed to a repo crisis if nothing changes: pic.twitter.com/93xDZTjZuM
— E.J. Antoni, Ph.D. (@RealEJAntoni) October 26, 2024
Sources:
- Federal Reserve: Information on the Bank Term Funding Program (BTFP)
- Federal Reserve Bank of New York: Data on reverse repurchase agreements (RRPs)
- Federal Reserve: Daily operations report