The Federal Reserve's reverse repo operation saw 73 counterparties taking $478.728 billion, a slight increase from the previous day. Despite the decline in reverse repo amounts from over $2500 billion in 2023 to less than $500 billion, experts anticipate the Fed to boost the money supply, potentially leading to a market rally. Overall liquidity, excluding reverse repos and the Treasury's cash balance, has been rising since mid-2023, influencing stock markets.
Reverse Repo $477BN, vs $478BN yesterday. Still some dry powder left
🔴 73 COUNTERPARTIES TAKE $476.862B AT THE FED REVERSE REPO OPERATION.
Fed pivot or not, liquidity is on the rise again. Overall liquidity, as defined by the Fed’s balance sheet, less reverse repos (RRP) less the Treasury’s cash balance at the Fed (TGA), has been rising since mid-2023, taking stocks with it. 🧵 https://t.co/h50R2N8WgX
.@crossbordercap expects the Fed to boost the money supply further, pointing toward the possibility of a continued market rally. Howell dives into the inner workings of the central bank: - Inside the Fed’s liquidity toolbox - Why money supply moves AI & #Bitcoin @annberry_NYC https://t.co/u9BxORYeeM
WARNING: Reverse Repo is falling off a cliff And has declined from more than $2500 billion to less than $500 billion since 2023 https://t.co/l9lt04AbD0
Reverse Repo $478.7BN, up from $444.8BN
🔴 73 COUNTERPARTIES TAKE $478.728B AT FED REVERSE REPO OPERATION.