Wall Street is still popping champagne over a maybe-rate-cut, while the real show is happening backstage: liquidity. The #Fed’s overnight reverse repo has collapsed from a $2.3 trillion mountain to pocket change ($17.9 billion). That pile of “extra money nobody wanted” was parked at the Fed like a kid’s allowance in a piggy bank. As it drained, it quietly juiced markets like stealth #QE .
Now the piggy bank is empty, the Fed’s #QT party is about to hit the wall, and bank reserves—still fat at $3.2 trillion—are next on the chopping block.
