AI Data Insight
In Q4 2026, the latest U.S. depository institutions reverse repo balance dropped to $325.837 billion, continuing its decline from the previous reading. It has shrunk significantly compared to the 2021-2022 peak, highlighting that the impact of the Federal Reserve's Quantitative Tightening (QT) on bank reserves is increasingly emerging, and the volatility risks in the short-term funding market warrant vigilance going forward.