Miquyl on Nostr: I remember the repo spike, reading this made me realize I should read up on that ...

I remember the repo spike, reading this made me realize I should read up on that post-mortem. About the repo facility drying up, doesn’t the excess liquidity reduce the need for that sort of (super) short-term facility anyway? Once the liquidity is in the system, it only leaves if central banks are selling securities, right? That would be the mechanism by which the Fed pulls back those excess reserves as you mentioned, so the pace of that will be important to watch, but I don’t see the Fed selling at a clip that materially disrupts markets.