I鈥檓 not a #finance expert but this seems really bad. Banks haven鈥檛 needed this much cash infusion since the 2008 recession. On Oct 31, the Fed infused $51B of cash into one bank (they didn鈥檛 say which), and on Dec 28, they infused another $34B of cash into another bank (again they didn鈥檛 say which). This is after five years of zero such actions.
The article speculates that there is a short squeeze: banks have been shorting precious metals like silver and gold, but their prices have skyrocketed. They鈥檙e getting margin-called.
In any case, it seems that banks are suffering a liquidity crunch, to the tune of about $85B so far. Is this bad? This seems bad.
https://www.dcreport.org/2026/01/01/ny-fed-follow-up-34b-cash-infusions-wall-street/
