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 |
This content is AI-generated based on source articles. While we strive for accuracy, errors may occur. We recommend verifying with the original source.
Related Articles
Donald Trump has officially denied rumors of offering the Fed Chair role to JPMorgan's Jamie Dimon. Explore the implications for the financial markets and monetary policy.
Fed Vice Chair Philip Jefferson says the current policy stance is 'well positioned.' Explore the latest on Fed Philip Jefferson interest rate policy 2026 and its market impact.
Fed Governor Michelle Bowman warns of labor market risks, suggesting further rate cuts may be necessary. Explore the Fed Rate Cut Outlook 2026 and its impact.
San Francisco Fed President Mary Daly emphasizes 'deliberate calibration' for the Fed Mary Daly interest rate policy 2026. Insights on inflation targets and market impact.
Donald Trump has officially denied rumors of offering the Fed Chair role to JPMorgan's Jamie Dimon. Explore the implications for the financial markets and monetary policy.
Fed Vice Chair Philip Jefferson says the current policy stance is 'well positioned.' Explore the latest on Fed Philip Jefferson interest rate policy 2026 and its market impact.
Fed Governor Michelle Bowman warns of labor market risks, suggesting further rate cuts may be necessary. Explore the Fed Rate Cut Outlook 2026 and its impact.
San Francisco Fed President Mary Daly emphasizes 'deliberate calibration' for the Fed Mary Daly interest rate policy 2026. Insights on inflation targets and market impact.