The post Federal Reserve Injects Record $74.6 Billion In Year-End Liquidity appeared on BitcoinEthereumNews.com.

The Federal Reserve lent $74.6 billion to banks through its Standing Repo Facility during year-end 2025 funding adjustments. The Federal Reserve (Fed) opened 2026 with a major short-term liquidity operation, lending $74.6 billion to banks through its Standing Repo Facility. This move quickly drew attention across financial media, with some describing it as a large cash injection.  However, analysts say it reflects routine year-end funding patterns rather than hidden financial stress. Banks often use this facility to manage temporary cash shortages during reporting periods and seasonal balance sheet adjustments. Standing Repo Facility Usage Reaches Record Levels Banks withdrew a total of $74.6 billion from the Federal Reserve’s Standing Repo Facility at the end of 2025. About $31.5 billion of this amount was backed by U.S. Treasuries, while roughly $43.1 billion came from agency mortgage-backed securities.  🚨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 The facility allows eligible institutions to temporarily exchange high-quality collateral for cash. Most loans are short-term and repayable within one day, though some can extend up to one week. This usage marked the largest single-day withdrawal from the facility since the COVID-19 pandemic, showing the program is functioning as intended. The operation represents temporary borrowing, and all funds are expected to return to the Federal Reserve once private funding resumes. Analysts note that this is part of seasonal banking behavior and is unrelated to permanent asset purchases. The facility acts as a backup for liquidity management, offering banks a reliable source of cash during predictable stress periods. Year-End Funding Pressures Drive Activity Year-end…

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Filed under: News - @ January 1, 2026 7:24 pm