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Why the Fed is still seeing $2.2 trillion in daily demand for its overnight repo facility

Por: MarketWatch Business January 13, 2023

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The Fed’s repo program , like banks and money-market mutual-funds, park large amounts of cash overnight, while lately earning 4.3%, up from 0.5% in March. Use of the Fed’s facility hit a record of about $2.5 trillion in late December (see chart), a time of year when liquidity in financial markets has been prone to run thin. Fed’s reverse repo facility continues to see $2 trillion in daily demand as financial conditions tighten. New York... + full article



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