As spikes increase, is the Fed’s Reverse Repo Program beneficial or harmful to market functioning?

On June 30th, cash invested in the Fed’s reverse repo facility spiked to $339.5 billion. Market reaction to this figure was somewhat muted. Quarter ends have always been problematic for the banks and broker dealers and with the pressure on market participants to reduce their balance sheets and risk profiles, the figure did not really receive the kind of reaction we might have expected in the past. But is this figure worth a second look?

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