Federal Reserve provided $29.4 billion in liquidity.

Federal Reserve's Liquidity Intervention

The Federal Reserve injected 29.4 billion dollars of liquidity into the banking system to alleviate liquidity concerns in the markets. This move supports assets considered to be riskier, such as Bitcoin.

The operation in question is the largest transaction since the 2020 pandemic. The transaction was executed through the standby repo facility (SRF) and has provided an incentive to temporarily increase cash reserves and lower repo rates.

However, this increase in liquidity is regarded as a short-term measure and is not seen as a sign of a shift towards an expansionary monetary policy.