Fed injects $125 billion into US banks over five days via overnight repos as reserves hit four-year low of $2.8 trillion; largest short-term liquidity move since COVID-19 crisis aims to prevent funding stress, signals stealth easing despite Powell's hawkish stance.

$125 billion in 5 days: Fed quietly floods banks with cash again — what’s going on?

Federal Reserve quietly pumped $125 billion into the U.S. banking system over five days, marking its largest short-term liquidity move since the 2020 COVID-19 crisis. On October 31 alone, the Fed injected $29.4 billion through overnight repurchase agreements (repos), allowing banks to trade U.S. Treasuries for cash to ease funding stress.This cash flood comes as bank reserves hit $2.8 trillion, the lowest in over four years. Despite Fed Chair Jerome Powell's hawkish talk on inflation, this move ...