Fed Injects $40 Billion in December as Global Liquidity Hits Record High

The Federal Reserve (Fed) injected $16 billion into the US banking system on December 30, marking the second-largest liquidity operation since the COVID-19 crisis. These funds were supplied through overnight repurchase agreements (repos), pushing the total amount of Treasury securities purchased via repos in December to $40.32 billion.

The scale of the intervention has reignited debate over hidden stress in short-term funding markets, and what rising global liquidity ultimately means for risk assets, including Bitcoin.

According to Barchart, the December 30 operation ranked just behind pandemic-era emergency measures in size.

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