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TGA, reverse repo and bank reserves
Three accounts at the Fed decide how much of its balance sheet actually reaches markets: bank reserves, the Treasury General Account and the reverse repo facility.
The accounts
- Bank reserves: banks’ cash at the Fed, the money that funds the system. Now US$2.89 trillion. Latest.
- Treasury General Account (TGA): the government’s cash at the Fed. Now US$1.02 trillion. Latest.
- Overnight reverse repo (RRP): cash money funds lend to the Fed overnight. Now US$5.1 billion. Latest.
How money moves between them
The Fed’s liabilities have to add up to its assets. So if the Fed’s balance sheet stays the same and the TGA rises (for example after tax day or a burst of bond sales), reserves or the RRP must fall by the same amount. When the Treasury spends its cash, it flows back into bank accounts and reserves rise. Around debt-limit standoffs the Treasury runs the TGA down, adding liquidity, then rebuilds it afterwards, draining it.
Fed Net Liquidity
That’s why many investors use Fed Net Liquidity = Fed balance sheet − TGA − reverse repo. It’s US$5.73 trillion as of 30 October 2026, up 2.5% on a year earlier. See the latest.
The backstop
If reserves get scarce, banks and dealers can borrow overnight from the Fed’s Standing Repo Facility, set up in July 2021. Heavy use is a sign of strain.
Questions
Why does a rising Treasury General Account drain liquidity?
Taxes and bond purchases move money from bank deposits into the government’s account at the Fed, where it can’t be lent or invested, so bank reserves fall until the Treasury spends it.
What is Fed Net Liquidity now?
US$5.73 trillion as of 30 October 2026: the Fed balance sheet minus the TGA and reverse repos.
Related
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Global Liquidity Index Start free trialGeneral information only, not financial advice. Data can be delayed, revised or wrong. Sources and credits.