I was thinking maybe RRP money was going back into T BIlls where it belongs but I see the RRP rate at 3.8 and the 30 day T bill at 3.6.
It's pretty damn funny there are $2TN dollars floating around with no place to go. So let's see. If the Fed were to pay 3.8% on $2Tn for a year that would be $76bn that would otherwise go to the Treasury. If they lowered the RRP rate to some smaller fraction of the 30 day T bill rate then if several hundred billion or a trillion went to them instead, short rates would come down. Ooops, wrong message. As a slush fund the RRP program may be a real winner but to the extent that 6 maybe 7 people in the world care, the RRP program is the proverbial PR red headed step child. Now why nobody cares about $2Tn escapes me.
Lee, you have a history of communications with the Fed. Why don't you ask for the list that's supposed to be public, of RRP participants.