Banks Borrow $50B at Fed's SRF as Repo Rates Surge and RRP Holdings Hit $52B
Banks borrowed a record $50 billion from the Fed's new Standing Repo Facility (SRF) amid volatile repo rates, with ON RRP balances also spiking to $52 billion, indicating significant liquidity movements at month-end. The activity reflects efforts to keep repo rates aligned with the Fed's policy rate, and the Fed's liquidity tools are being further optimized to ensure market stability.