Liabilities and Capital: Liabilities: Reverse Repurchase Agreements: Wednesday Level

WLRRAL • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

445,875.00

Year-over-Year Change

-14.12%

Date Range

6/14/2006 - 8/6/2025

Summary

The WLRRAL tracks the weekly level of reverse repurchase agreements (reverse repos) in the U.S. financial system, which represents a critical short-term liquidity management tool used by the Federal Reserve. This metric provides insights into monetary policy implementation and banking system cash management.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

Reverse repurchase agreements are financial transactions where the Federal Reserve sells securities with an agreement to repurchase them later, effectively absorbing excess liquidity from the banking system. Economists closely monitor this trend as an indicator of monetary policy stance and short-term market liquidity conditions.

Methodology

The data is collected weekly by the Federal Reserve, measuring the total dollar value of reverse repo transactions conducted on a specific Wednesday.

Historical Context

This metric is crucial for understanding monetary policy implementation, market liquidity, and short-term interest rate management strategies.

Key Facts

  • Reverse repos help the Fed manage excess bank reserves
  • The metric reflects short-term financial market conditions
  • Changes in WLRRAL can signal shifts in monetary policy stance

FAQs

Q: What are reverse repurchase agreements?

A: Reverse repos are short-term financial transactions where the Federal Reserve sells securities to banks with an agreement to buy them back later, helping to manage market liquidity.

Q: Why do economists track the WLRRAL?

A: The metric provides insights into monetary policy implementation, banking system liquidity, and short-term interest rate management strategies.

Q: How often is WLRRAL data updated?

A: The data is collected and reported weekly, specifically on a Wednesday, providing a consistent snapshot of financial market conditions.

Q: What does a high WLRRAL value indicate?

A: A high value typically suggests excess liquidity in the banking system and potential tightening monetary policy conditions.

Q: Are there limitations to interpreting WLRRAL?

A: While informative, the metric should be analyzed alongside other economic indicators for a comprehensive understanding of financial market dynamics.

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Citation

U.S. Federal Reserve, Liabilities and Capital: Liabilities: Reverse Repurchase Agreements: Wednesday Level [WLRRAL], retrieved from FRED.

Last Checked: 8/1/2025