We noticed the Reverse Repo monster had reached seismic proportions right around the top. From our September 2022 Global Market Perspective: "the Reverse Repo usage exploded higher last year as, thanks to the Fed’s money printing, institutions had nowhere else to put their cash."

"However, usage has continued to grow, despite the Fed beginning to tighten monetary policy. This reflects the fact that money market funds have been taking deposits away from the banks, and this is another barrier to banks’ ability to extend finance in the economy...

It’s as if the Fed, by its unprecedented, gargantuan money printing has created a Frankenstein- like monster with the unintended consequence of actually impeding the wheels of finance.