What is really happening inside an important corner of America?
Do you really think the American economy is as good as the stock market reflects?
Starting from January 2026, the Fed continues to intervene to rescue the banking sector with T-bill purchase packages in the first two months of the year, which is why the Fed does not need to resort to Repo; evidence shows that repo is not occurring. Behind this action, the U.S. government has increased its government cash accounts at the Fed, rising more than $94,000 compared to the previous week, directly pulling money out of the market, evidenced by the RRp amount from January 2026 being just under $7 billion in deposits each day, a figure too small compared to the safety threshold, and withdrawing money from the banking system, with reserves dropping below $3 trillion, now only $2.954 trillion. All of this indicates that outside money has thinned, internal money has decreased, however, it is not yet at a stressful level, so Sofr remains within acceptable limits.
What we need to recognize is what significant events are quietly taking place; let’s follow along for further updates.
Do you really think the American economy is as good as the stock market reflects?
Starting from January 2026, the Fed continues to intervene to rescue the banking sector with T-bill purchase packages in the first two months of the year, which is why the Fed does not need to resort to Repo; evidence shows that repo is not occurring. Behind this action, the U.S. government has increased its government cash accounts at the Fed, rising more than $94,000 compared to the previous week, directly pulling money out of the market, evidenced by the RRp amount from January 2026 being just under $7 billion in deposits each day, a figure too small compared to the safety threshold, and withdrawing money from the banking system, with reserves dropping below $3 trillion, now only $2.954 trillion. All of this indicates that outside money has thinned, internal money has decreased, however, it is not yet at a stressful level, so Sofr remains within acceptable limits.
What we need to recognize is what significant events are quietly taking place; let’s follow along for further updates.