October 20, 2021
Markets

Federal Reserve’s reverse repo program sees record $1.6 trillion demand on Thursday

As the clock ticks down on the debt-ceiling standoff in Washington, Wall Street firms parked a record $1.605 trillion of cash overnight in the Federal Reserve’s popular reverse repo program.

See: Here’s what would happen if Washington doesn’t prevent a government shutdown

While the Senate Thursday afternoon passed a bill to extend government spending through Dec. 3 and avert a shutdown, the measure now goes to the House of Representatives for a vote, which is expected to approve the measure, but the federal debt ceiling has yet to be lifted.

See: What happens if the U.S. defaults on its debt?

As the drama plays out on Capitol Hill, a total of 92 firms took part in the Fed’s Thursday reverse repo operation. The program, run out of the Federal Reserve Bank of New York, allows banks, government sponsored enterprises and some of the…

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