๐บ๐ธ Fed Breaks Record with $31B Liquidity Injection!
The Federal Reserve just pumped a massive $31 billion into the U.S. banking system via overnight repo operations on Dec 31, 2025 โ marking the largest single-day liquidity injection since COVID-19 and even surpassing the peak of the dot-com era.
โข This move came as banks scrambled for cash at year-end quarter close, pushing total repo loans that day to about $74.6 billion as institutions balanced liquidity needs.
โข The Fed removed previous caps on repo operations and has been aggressively supplying cash to ensure smooth market functioning, especially during seasonal stress.
โข Markets see this historic injection as a sign of ongoing liquidity management, with potential implications for risky assets and overall financial stability.
๐ญ What do you think โ is this the start of a new era of Fed intervention? ๐
