The Federal Reserve plans to inject roughly $6.8 billion into financial markets on December 22, 2025, through a repurchase agreement operation.
The move marks the Fed’s first liquidity-adding repo operation since 2020, separate from any quantitative easing programme.
The operation is part of broader year-end liquidity management, with around $38 billion deployed over the past 10 days.
Federal Reserve officials described the action as a routine response to seasonal funding pressures.
Year-end periods typically strain liquidity as banks adjust balance sheets and meet regulatory requirements.
Repo operations allow the Fed to lend cash to banks in exchange for high-quality collateral such as US Treasury securities.
These transactions are usually short term and often unwind within a single day.
The primary goal is to prevent spikes in short-term interest rates and maintain orderly market conditions.
Federal Reserve data show that the secured overnight financing rate market averaged $2.7 trillion in daily volume in 2025.
More than $1 trillion of that activity was conducted through repo transactions.
The December 22 operation is capped at $6.801 billion on the Fed’s public schedule.