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ReSolveRiffs with Michael Howell on Liquidity & its Multi-Dimensional Impacts on Markets and the Economy

Resolve Riffs Investment Podcast

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The Mechanics of Reversal Repo

The Treasury general account is almost empty, as you say. Yellen has said she wants to get to, I think you said somewhere in the neighborhood of $600 or $800 billion into the TGA. If that reversal repo pool came back, bank reserves would go up by commensurate amounts. In other words, you'd see a one-off shot of 2.6 trillion back into bank reserves if the reversal repo disappeared.

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