ON RRP Facility Levels
Track the Federal Reserve's Overnight Reverse Repo facility. Declining ON RRP signals the financial system's liquidity buffer is thinning.
Current Value
Trigger Level: Near zero = no buffer
AI Analysis
As of February 22, 2026, the Overnight Reverse Repurchase (ON RRP) Facility stands at 0.000496, indicating a warning status with nearly all liquidity depleted at ~$0 billion. This near-zero value suggests a lack of financial buffer in the system, significantly raising the risk of a recession.
What is the ON RRP Facility?
The Overnight Reverse Repurchase Agreement (ON RRP) Facility allows eligible counterparties to deposit excess cash at the Federal Reserve overnight. Its balance reflects excess liquidity sloshing around the financial system.
Why It Matters for Recession Risk
Rapidly declining ON RRP balances indicate the financial system's liquidity cushion is evaporating. Near-zero levels mean banks and money market funds have less buffer during market stress events.
Historical Context
ON RRP balances peaked above $2.5 trillion in late 2022 and have been declining as quantitative tightening drains reserves. The pace of decline is a key indicator of when liquidity constraints may start binding.
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