Fed overnight reverse repo usage falls to $626 million on September 8

Summary

On Tuesday, September 8, 2026, usage of the Federal Reserve's overnight reverse repurchase (RRP) facility fell to $626 million among three counterparties Wallstreetcn. This marks a continued decline from $675 million on September 4 and $702 million on September 3 .

Impact Analysis

So basically, the RRP facility is now a ghost town. Dropping to a mere $626 million Wallstreetcn—down from the trillions we saw a couple of years ago—means the 'excess liquidity' buffer is officially gone. The interesting part isn't the minor day-over-day decline from $675 million ; it’s the fact that we’ve reached the floor.

I’d read this as a clear signal that the Fed’s Quantitative Tightening (QT) has entered its most sensitive phase. With the RRP drained, any further balance sheet reduction will now pull liquidity directly from bank reserves. The market seems to be sleepwalking through this, but we are entering the 'danger zone' where repo market volatility typically spikes. If SOFR starts gapping higher, the Fed will be forced to terminate QT sooner than the dot plots suggest. I'm watching the spread between SOFR and the IORB closely; the margin for error in the funding markets has just evaporated. This isn't just a technicality; it's the end of the easy-liquidity era.