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
Published: November 6, 2025 Key takeaways What changed today (Nov. 6) As of Wednesday, Nov. 5 (the latest consolidated data), SRF usage collapsed to ~$82 million—split roughly $43 million Treasuries and $39 million MBS—after the early‑week spike. That sharp slowdown corroborates the view that month‑end frictions were the primary driver, not a sustained funding seizure. FRED+1 Separately, the Fed’s Oct. 29 policy shift—to stop QT on Dec. 1 and to reinvest MBS into T‑bills—continues to shape expectations that money‑market stress should gradually ease into year‑end as reserves stabilize. Reuters How we got here: A quick timeline What the SRF is—and