The Fed plans to inject approximately $6.8 billion into the market today.

On December 22, the Fed plans to inject approximately $6.8 billion into the financial market through a repurchase protocol at 10 PM Beijing time tonight. Over the past 10 days, the Fed has injected about $38 billion as part of its year-end liquidity management. The repurchase protocol, commonly known as the repo, is a core tool for managing daily liquidity in the financial system. In a repurchase protocol, the Fed provides cash loans to banks, secured by high-quality collateral (typically government bonds). Banks quickly repay the loans to reclaim their assets, usually within a day. This move aims to address year-end liquidity tightness and recent adjustments by the Fed to its standing repo facility. Although officials claim these measures are routine, some crypto assets investors view them as a favourable information signal for risk assets. (Barchart)