https://x.com/TheRobynHD/status/1984570640754520355 (German) >Something strange is happening in the US financial system – and it's showing that there's stress behind the scenes. > Yesterday, banks suddenly had to borrow 50 billion US dollars from the Federal Reserve (the US central bank). This happened through the so-called Standing Repo Facility (SRF) – an emergency tool that allows banks to get short-term cash when they can't get liquid anywhere else. > At the same time, money market funds – large investment funds – have parked their excess cash in Reverse Repos (RRP) – meaning they're lending money to the Fed to keep it safe in the interim. > Why this is unusual: Normally, money flows between banks without the Fed having to step in. But now we're seeing that banks trust each other less or simply don't have enough reserves. The interest rates in the overnight lending market (where banks lend each other money overnight) have even risen above the rate they'd get directly from the Fed. That only happens when liquidity is really tight. (Continues) >Oct 31 (Reuters) - Federal Reserve liquidity facilities caught fire on Friday as month-end pressures pushed a key lending tool to a record level of usage. The Fed’s Standing Repo Facility lent a total of $50.35 billion on Friday to eligible financial firms in two separate availabilities, the highest-ever usage since the tool was put in place in 2021 to provide fast loans collateralized with Treasury or mortgage bonds. At the same time, financial firms also parked a considerable amount of cash on Fed books, with the reverse repo facility seeing inflows of $51.8 billion. https://archive.ph/UJciH https://www.reuters.com/business/finance/banks-tap-fed-standing-repo-facility-record-numbers-amid-month-end-pressures-2025-10-31/