The Federal Reserve injected $18.5 billion into the U.S. banking system this week, marking the fourth largest liquidity injection since the COVID-19 pandemic

According to Barchart, the Federal Reserve injected $18.5 billion into the U.S. banking system this week through overnight repos, marking the fourth largest liquidity injection since the COVID-19 pandemic, even surpassing the peak of the dot-com bubble.

The chart shows that the peaks of liquidity injections since 2021 mainly occurred during the pandemic and periods of economic stress. This injection reflects tight bank reserves, which may stem from quarter-end funding demands or broader credit tightening.