Fed’s reverse repo facility fell to $28.8B, its lowest level since April 2021

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The Federal Reserve’s reverse repo facility just hit a new low, and it’s a warning shot. On Thursday, only 14 participants parked cash in the Fed’s overnight reverse repurchase agreement window, dropping the total balance to $28.8 billion. That’s the smallest pile of cash seen in over four years, with the last time it was this low being April 2021, according to New York Fed data cited by Bloomberg. The sharp drop didn’t happen in a vacuum. The Treasury Department has been unloading short-term T-...