The Federal Reserve recently conducted a reverse repurchase operation, which basically means they are pulling money back from the market. This time, a total of 26 institutions participated, including banks and funds, and they collected a total of $82.214 billion. This number looks quite large, but compared to the past, it’s not much; last year, at its peak, they could collect up to $2 trillion in a single day!

This operation is the Federal Reserve controlling the money in the market. They offer these institutions a fixed interest rate, which is more favorable than keeping money in the bank, so these institutions are willing to deposit money with the Federal Reserve. Now that the Federal Reserve is raising interest rates, this reverse repurchase rate has also increased and is nearly 5% now, no wonder everyone is rushing to deposit money there.

Recently, this amount has decreased significantly, indicating that there isn’t as much money in the market as before. This might be related to the Federal Reserve’s balance sheet reduction, or it could be because interest rates are high now, leading everyone to prefer investing their money elsewhere. However, $82 billion is still a significant amount, which shows that many institutions still think it’s safest to keep their money with the Federal Reserve.

If you ask me, this is the Federal Reserve playing a "money" game. They want to tighten things up, so they raise the interest rates, and everyone sends their money over; if they want to loosen things up, they lower the interest rates. Right now, this over $80 billion looks quite intimidating, but it’s just a tool they use to adjust the market. As ordinary people, we can just watch the excitement; after all, this money doesn’t have any direct connection to us.