Is the Overnight Reverse Repo Facility a Liability of the Fed?

The fed ran out of the capacity to borrow from depository institutions, largely because of the supplementary leverage ratio it was making banks holda of capital for the privilege of lending the fed money on a riskless basis. And so it's now borrowing about two trillion dollars from the money fund industry at the overnight arpe facility each day to fund its very massive holdings of securities. So you could reasonably expect that as the fed gets maller over time, the overnight r p facility borrowing will shrink,. and the reserve balances borrowing by the fed from banks will both shrink. But there could be some interesting dynamics in that process, at least interesting to a sort of uber geeks like you and me,

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