The Fed's reverse repo mechanism attracted $473.5 billion in inflows on the last day of 2024, the largest since early summer

A flood of cash flowed into the Fed's reverse repo facility on Tuesday, the last trading day of 2024, pushing the facility's use to the highest level since early summer. Money market funds and other eligible institutions parked $473.5 billion on the Fed's books. The surge in use was not unexpected, as cash often flows into the Fed at the end of the quarter and year as companies manage their balance sheets and typically make short adjustments. Tuesday's cash inflow was the highest since $664.6 billion flowed in on the last trading day of the second quarter, and exceeded the $465.6 billion at the end of the third quarter on September 30.