Poor liquidity is just superficial -The Federal Reserve's balance sheet remained sideways around $6.67 trillion in the latest week, ostensibly continuing to shrink, but in reality, it has only shrunk slightly by less than 5% since March -The Reverse Repurchase Pool (RRP) had a balance of over $700 billion at the beginning of 2024, but now only $182.7 billion remains -The New York Federal Reserve has normalized the SRF morning session window since March, and will also provide up to $500 billion in afternoon sessions every day starting from the 26th of this month So the question is, is liquidity really poor? The policy and the quantitative tightening of the Federal Reserve are only superficial. In fact, the official has made a long chain liquidity release strategy of RRP → SRF → bank → treasury bond bond auction: the money squeezed out by RRP is first borrowed back by big banks through SRF, and then taken back to the record issuance of bonds by the Ministry of Finance. Nominally pumping water, secretly releasing water, this is the 2025 version of invisible QE.