AI Data Insight
In the third quarter of 2026 (the week of July 17), the balance of the US depository institutions' overnight reverse repurchase agreement (ON RRP) facility stood at $354.079 billion, a slight increase of approximately $5.6 billion from $348.475 billion in the previous week. Despite the slight short-term rebound, the overall balance has significantly decreased compared to its 2022 peak, reflecting that funds are flowing from this facility back into the financial system amid the Federal Reserve's (Fed) ongoing quantitative tightening (QT). Following the inauguration of the new Chairman Kevin Warsh, the market is closely watching the future path of balance sheet normalization to assess medium-term liquidity risks.