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
Historical Trend
AI Analysis
Today's value of the ON RRP Facility is $80 billion, reflecting a significant increase from near-zero levels observed in late March, where it briefly dipped to $0.227 billion on April 7. This sharp rise indicates a reversal from a period of extreme depletion, but the current level is still 97% depleted compared to its historical maximum of $105.993 billion in late December 2025. The trend suggests heightened recession risk, as the facility's near-zero buffer implies limited liquidity in the financial system, which can exacerbate economic downturns. The abrupt shift to $80 billion, while a temporary reprieve, does not alleviate the underlying vulnerability, indicating that the economy remains at risk of contraction.
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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