Discussion Paper
Dropping Like a Stone: ON RRP Take-up in the Second Half of 2023
Abstract: Take-up at the Overnight Reverse Repo Facility (ON RRP) has halved over the past six months, declining by more than $1 trillion since June 2023. This steady decrease follows a rapid increase from close to zero in early 2021 to $2.2 trillion in December 2022, and a period of relatively stable balances during the first half of 2023. In this post, we interpret the recent drop in ON RRP take-up through the lens of the channels that we identify in our recent Staff Report as driving its initial increase.
Keywords: overnight reverse repo (ON RRP) facility; Federal Reserve Balance Sheet; ample reserves;
JEL Classification: E52;
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2023-12-19
Number: 20231219