Banks Borrow Record $50 Billion at Fed’s New SRF amid Hot Repo Rates, ON RRPs Spike to $52 Billion in Opposite Direction by Wolf Richter • Oct 31, 2025 • 1 Comment Month-End Liquidity-Palooza: Banks finally used the new & improved SRF the way the Fed has been exhorting them to use it to keep a lid on repo rates.
Fed Balance Sheet QT: Reserve Balances & ON RRPs -$109 Billion in October, -$3.0 Trillion from Peak. What’s Next, According to Powell by Wolf Richter • Oct 30, 2025 • 20 Comments Reserves will shrink further when the balance sheet stays flat after QT ends.
Fed Cuts by 25 Basis Points with 2 Dissents in Opposite Directions, QT to End, but MBS to Continue Rolling Off to Be Replaced by T-bills by Wolf Richter • Oct 29, 2025 • 158 Comments Flying blind and despite rising inflation.
Repo Market Brushfires Doused by Banks’ Use of the Fed’s Standing Repo Facility (SRF) by Wolf Richter • Oct 20, 2025 • 76 Comments The new & improved SRF begins to serve its purpose of allowing the Fed to push QT as far as possible without blowing anything up, unlike last time.
Powell on the End of QT (“We’re Not so Far Away but There’s a Ways to Go”), Shifting Assets to T-Bills, and Selling MBS by Wolf Richter • Oct 14, 2025 • 82 Comments Bonus: His doomsday scenario if Congress forces the Fed to stop paying interest to banks on their reserve balances.
The Huge US Bond Market and the US Dollar Blow Off the “Debasement Trade” by Wolf Richter • Oct 13, 2025 • 121 Comments The bond market has taken the opposite bet, and the dollar has strengthened.
Fed Balance Sheet QT: -$15 Billion in September, -$2.38 Trillion from Peak, to $6.59 Trillion by Wolf Richter • Oct 2, 2025 • 70 Comments The Standing Repo Facility got a bit of use on Sept. 15 (corporate tax day) amid minor liquidity strains in the repo market.
Status of US Dollar as Global Reserve Currency: USD Share Plunges to Lowest since 1994, as USD Exchange Rates Tank, Central Banks Diversify by Wolf Richter • Oct 2, 2025 • 51 Comments The rise of the “non-traditional reserve currencies.”
This Fed Meeting Must Have Been a Circus by Wolf Richter • Sep 17, 2025 • 207 Comments Amid only one dissent, FOMC Cuts by 25 basis points. “Dot Plot” sees 50 basis points in additional cuts in 2025. Risks shift to labor market. QT continues.
Money-Market Funds & CDs: Americans Grow their Huge Piles of Interest-Earning Cash Further despite Lower Yields by Wolf Richter • Sep 12, 2025 • 110 Comments Household money-market funds surged, large CDs also surged. But small CDs are the hot money; they flee when yields drop.
