Liquidity exhaustion has officially hit the US banking system.

The narrative of ample reserves just collided with reality.
They told you the banking system was flush with cash but they lied.

When the year end squeeze hit the banks got caught short and sprinted to the Fed for a fix.

The Standing Repo Facility is the emergency room for the dollar system. And the waiting room just got crowded.

While you were watching the ball drop the banks were begging for liquidity.

SRF Usage spiked to $75 Billion which is the highest since 2021.

Fed Balance Sheet is still churning $40B per month in bills.

Reserves are $2.9 Trillion but clearly not enough.

The system is fragile. When the repo market squeaks the printer gets oiled.