The read
Analysis of Oct 28, 2026, on data through Oct 28, 2026. Charts under each judgment are its evidence; sources are linked in the text.
- The cash cushion is gone, so every swing in the Treasury's account now hits bank reserves. The Fed's reverse repo facility, which held $2.4 trillion in 2022, is down to less than $1 billion. Money that leaves the private system now has nowhere to come from but reserves, which stand at $2.96 trillion. The Treasury's own account is large at $0.95 trillion, so its tax receipts and debt settlements drain reserves directly.
Where the cash sits: reserves, reverse repo and the Treasury's account
Trillions of dollars. When the Treasury's account or the reverse repo facility grows, reserves tend to fall.
Source: Federal Reserve Board (H.4.1); Federal Reserve Bank of New York.
Readings in this chart