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Earning absolutely nothing. 08:01
Image: Stefani Reynolds/Bloomberg
Thereâs so much spare cash sloshing around US funding markets that investors are choosing to park almost half a trillion dollars at the central bank earning absolutely nothing.
Usage of the Federal Reserveâs reverse repo facility a mechanism thatâs part of the central bankâs arsenal for helping to steer short-term interest rates surged on Thursday to an unprecedented $485.3 billion. And with the forces driving the dollar glut still some way from abating, that figure could climb further, adding fuel to an increasingly complex debate about what the Fed should do with its various tools to keep a rein on policy.