Jim Bianco joins Fox Business to discuss the Federal Reserve Repo Volume - 8/4/2021

The Fed’s reverse repo facility has seen increased usage over the past couple of months. The simple reason is the banking system has way too many reserves. The catalyst for this is the Treasury’s February decision to reduce its cash balance outstanding.

During the pandemic, the government issued a ton of debt. That money was initially held in the Treasury’s general account (or TGA) at the Fed.