Fed's quantitative tightening drains over $1 trillion, leaving about $1 trillion parked in the reverse repurchase facility. Despite declining usage, it hasn't caused disruptions in short-term markets. The facility's inflows have fallen below $1 trillion for the first time since August 2021, attributed to firms finding better returns in private securities and a surge of Treasury bills drawing attention away from the central bank offering. The decline in inflows is expected to reach $700 billion by the end of 2024.

Fed's Quantitative Tightening Impact