The Fed’s Liquidity Cushion Is Vanishing — What Happens When the Tank Runs Dry?

The Federal Reserve’s Reverse Repo Facility (RRP) dropped to its lowest level in 1,596 days, suggesting a crack in the liquidity backbone of global markets. This turnout, which points to tightening financial conditions, raises alarm bells across Wall Street and crypto circles. Experts Warn as Federal Reserve Reverse Repo Drops to a 5-Year Low Malone Wealth founder Kevin Malone noted the decline, warning that the “excess cushion” in financial markets is vanishing. He explained that once the RRP is empty, every new Treasury issuance must be absorbed directly by private buyers rather than being offset by cash parked at the Fed source: https://beincrypto.com/feds-liquidity-cushion-is-vanishing/