Fed Liquidity Watch (Nov. 6, 2025): Record SRF Usage Fades After $50B Spike—What the “$125B in 5 Days” Headlines Really Mean for Banks and Markets
U.S. banks borrowed a record $50.35 billion from the Federal Reserve’s Standing Repo Facility on Oct. 31, the highest daily use since its 2021 launch. Usage dropped sharply to $22.0 billion on Nov. 3, $4.8 billion on Nov. 4, and about $82 million by Nov. 5, indicating the surge was tied to month-end funding needs. The Fed will halt balance-sheet runoff on Dec. 1 and shift MBS reinvestments to Treasury bills.