Fox Business ADMITS we are in RECESSION.

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Repo operations at the Fed on the last day of 2025 signal growing stress in the financial system, similar to the setup we saw in 2019.

Banks and other financial institutions borrowed $74.6 billion from the New York Fed’s Standing Overnight Repurchase (repo) Facility on the final day of 2025. The last time we saw this kind of a spike in repo operations was in the months before the COVID-19 pandemic, as the stock market was tanking and the economy was going into spasms after the central bank began trying to “normalize” interest rates in the wake of the Great Recession.

Repurchase operations are an important aspect of the banking system. The repo market enables banks to borrow cash for a very short term to maintain liquidity and meet daily financing needs. In a repo trade, a financial firm puts up Treasurys and other “high-quality” securities as collateral for a short-term loan. The firm repurchases the bonds paying a nominal rate of interest, usually within 24 hours.

On Dec. 31, banks and other financial institutions put up $31.5 billion in Treasuries, along with an additional $43.1 billion in mortgage-backed securities to secure overnight loans.

Repo operations typically occur among private entities based on the market interest rate. A rise in the repo rate implies a shortage of available short-term cash.

https://www.moneymetals.com/news/2026/01/03/financial-system-showing-signs-of-strain-004587