The post Fed’s $74.6B Liquidity Injection Marks Largest Year-End Repo Facility Usage Since COVID appeared on BitcoinEthereumNews.com.

TLDR: Banks withdrew $74.6 billion from the Fed’s Standing Repo Facility in the largest usage since COVID-19. The liquidity surge stems from year-end balance sheet management rather than emergency quantitative easing. Financial institutions use Treasuries and mortgage bonds as collateral for temporary Fed borrowing programs. The funding event suggests the Fed may maintain flexible monetary policy and avoid aggressive tightening in 2026.  The Federal Reserve recorded its largest single-day liquidity injection in twelve months as banks withdrew $74.6 billion from the Standing Repo Facility on the final days of 2025.  This marked the highest utilization of the facility since the COVID-19 pandemic. Banks used Treasury securities and mortgage-backed securities as collateral for these temporary borrowings.  Market analysts attribute this surge to typical year-end funding pressures rather than systemic financial stress. Year-End Funding Dynamics Drive Record Usage The substantial withdrawal from the Fed’s lending facility reflects seasonal patterns in banking operations.  Financial institutions routinely reduce private market borrowing at year-end to present stronger balance sheets in regulatory filings. This practice forces banks to seek alternative funding sources when typical channels tighten. According to Bull Theory, a financial analysis account on social media, this development represents normal year-end behavior rather than emergency quantitative easing.  The Standing Repo Facility serves as a backup funding mechanism that banks access when private funding markets become constrained.  BREAKING: THE FED JUST INJECTED $74.6B INTO THE FINANCIAL SYSTEM. The largest liquidity injection in the last 12 months. On the final days of 2025, banks pulled $74.6B from the Fed’s Standing Repo Facility, backed by Treasuries and mortgage bonds. This was the largest… pic.twitter.com/lKQOtS4FVt — Bull Theory (@BullTheoryio) January 1, 2026 Unlike permanent asset purchases, these operations involve temporary loans that banks must repay. The timing coincides with traditional December liquidity squeezes that occur across global financial markets.…

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Filed under: News - @ January 1, 2026 2:27 pm