Fed Standing Repo Facility Record Borrowing Hits New Peak in 2025
The Fed's Standing Repo Facility saw record borrowing at the end of 2025. Reuters reports that high demand for liquidity is signaling stress in the financial markets.
Wall Street's thirst for cash has reached a breaking point. According to Reuters, borrowing from the Federal Reserve's Standing Repo Facility (SRF) surged to a record high as 2025 comes to a close. The sudden spike suggests that private markets are struggling to provide the liquidity needed for year-end balance sheet adjustments.
Why the Fed Standing Repo Facility Record Matters Now
The Federal Reserve established the SRF as a backstop to prevent money market chaos. When primary dealers can't find affordable cash elsewhere, they turn to the Fed. This week's massive volume indicates that the usual year-end 'window dressing' has turned into a scramble for survival for some institutions.
| Indicator | 2024 Year-End | 2025 Year-End |
|---|---|---|
| SRF Usage | Moderate | Record High |
| Market Stress | Low | Elevated |
Rising repo rates often lead to higher costs for leveraged investors and could signal a broader tightening of financial conditions in early 2026.
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