The Fed Has Begun Quantitative Tightening

Last week, the Fed raised the reverse repo rate from 0.00% to 0.05%. This may sound comically small, but 0.05% interest versus 0% is a alot of money when the principle is in the hundreds of billions if not trillions! The effect of this little discussed change was to immediately suck $250 billion dollars in reserves out of the banking system and return those reserves back to the Fed from whence they came. This is in essence a reversal of quantitative easing. This was $250 billion in quantitative tightening which occurred overnight.

https://www.zerohedge.com/markets/powell-just-launched-2-trillion-heat-seeking-missiles-zoltan-explains-how-fed-started-next