IDEAS home Printed from https://ideas.repec.org/a/fip/fedreb/93811.html
   My bibliography  Save this article

The Borrower of Last Resort: What Explains the Rise of ON RRP Facility Usage?

Author

Listed:

Abstract

This article explains why the Fed has been borrowing more than $1.4 trillion from its borrower-of-last-resort facility: the Overnight Reverse Repo. We compare the roles of five channels potentially driving Fed borrowing (such as saving glut, quantitative easing, regulation, etc.) and find that one channel — the Treasury General Account drawdown — is associated with most of the current usage. We also find this channel's impact could be partially moderated if the Fed tapers quantitative easing accordingly.

Suggested Citation

  • Kyler Kirk & Russell Wong, 2021. "The Borrower of Last Resort: What Explains the Rise of ON RRP Facility Usage?," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, vol. 21(43), December.
    • Handle: RePEc:fip:fedreb:93811
    as

    Download full text from publisher

    File URL: https://www.richmondfed.org/publications/research/economic_brief/2021/eb_21-43
    File Function: Article
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Overnight Reserve Repo; lending;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedreb:93811. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Pascasio (email available below). General contact details of provider: https://edirc.repec.org/data/frbrius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.