Fed's Reverse Repo Facility Attracts $473.5 Billion in Inflows on Final Day of 2024, Largest Since Early Summer

Large amounts of cash poured into the Federal Reserve's reverse repo tool on Tuesday's final trading day of 2024, driving use of the instrument to its highest level since early summer. Money market funds and other eligible institutions deposited $473.5 billion on the Fed's books. That big jump in use was not unexpected, with large amounts of cash often flowing into the Fed at quarter-end and year-end as companies manage their balance sheets, which typically undergo brief adjustments. Tuesday's cash inflows were the highest level since inflows of $664.6 billion on the last trading day of the second quarter, and more than the $465.6 billion at the end of the third quarter on Sept. 30th.