The Fed's reverse repo mechanism attracted $473.5 billion in inflows on the last day of 2024, the largest since early summer
Odaily reports that a large amount of cash flowed into the Federal Reserve's reverse repurchase facility on Tuesday, the last trading day of 2024, pushing the usage of the tool to its highest level since early summer. Money market funds and other eligible institutions deposited $473.5 billion on the Fed's balance sheet. This surge in usage was not unexpected, as temporary adjustments are common at the end of quarters and the year-end, as companies manage their balance sheets, often resulting in large cash inflows to the Fed. Tuesday's cash inflow was the highest since the $664.6 billion inflow on the last trading day of the second quarter, and also exceeded the $465.6 billion on September 30, the end of the third quarter.
