AI Data Insight
The latest Q3 2026 data released by the Federal Reserve shows that the volume of the Overnight Reverse Repurchase Facility (ON RRP) rose slightly to $5.255 billion, little changed compared to the previous value of $4.736 billion, but the overall level has essentially bottomed out. As the excess liquidity buffer of up to $2 trillion in the past disappears, the market worries that the subsequent balance sheet reduction will directly impact bank reserves, driving up volatility risks in short-term funding markets.