Fed Injects $125B in Five Days as Banks Tap SRF; John Williams Signals Balance‑Sheet Expansion Could Be Next (November 7, 2025)
Dateline — November 7, 2025. The Federal Reserve’s money‑market backstop has roared to life at month‑end and into this week. Banks drew on the Standing Repo Facility (SRF) in record size at the turn of October, part of a roughly $125 billion burst of short‑term liquidity across five trading days aimed at smoothing funding markets and averting a broader credit squeeze. Today, New York Fed President John Williams said the Fed may soon need to rebuild reserves by gradually purchasing assets—a technical step for liquidity management, not a policy pivot—after the Fed’s decision last week to halt quantitative tightening (QT) on December 1. Federal Reserve+3The Economic Times+3ABC+3 What happened Why