The “wasteland” is over, guys—the Fed’s “piggy bank” is empty!

Delphi Digital just dropped a bombshell: the Federal Reserve’s reverse repurchase agreement (RRP) balance has plunged from a peak of $2.3 trillion to nearly zero. What does this mean?

Over the past three years, Wall Street banks and money market funds have stuffed all their excess cash into the Fed’s “super savings account,” allowing the Fed to keep tightening (QT) and issuing massive debt without draining the banks’ reserves dry.