Demand for the Federal Reserve’s popular reverse repurchase program (RPP) climbed to $1.58 trillion on Monday, signaling continued high demand for the overnight facility as 2022 kicks off.
Wall Street has been regularly parking more than $1 trillion overnight in the Fed facility since early August, with demand hitting a peak thus far of about $1.76 trillion in late December.
Demand for Fed repo program regularly topped $1.5 trillion in the final weeks of December 2021.
Barclays, Federal Reserve
Use of the facility has remained high even after the Federal Reserve last month signaled it would no longer look to offer its full arsenal of pandemic support for financial markets in 2022.
But Fed Chairman Jerome Powell, in a more hawkish December pivot, also said the…