Federal Reserve Injects $125 B into Banks Over 5 Days Amid Liquidity Strain

The Fed quietly pumped roughly US$125 billion into U.S. banks through its Standing Repo Facility over the past five days to ease funding pressure and replenish reserves, which have dipped to about US$2.8 trillion—the lowest in four years. :contentReference[oaicite:1]{index=1} While the move supports banking-system stability, analysts warn it signals underlying stress in inter-bank liquidity and raises questions over the timing of rate cuts. Markets now price a 67 % chance of a rate cut in December, although the Fed says its focus remains on inflation control.