Fed Liquidity Watch // Issue #6 - Weekly H.4.1 Breakdown
The Treasury Spent. Your Bank Got the Money.
Every Thursday the Federal Reserve quietly publishes a report called the H.4.1. Most people have never heard of it. It’s a dry accounting document — a balance sheet of the Federal Reserve itself — and buried inside it is some of the most important information available about what’s actually happening to financial conditions in the United States.
This series reads it every week so you don’t have to.
Quick Update — Week of March 25, 2026
Here are the three numbers that drive the weekly liquidity picture:
Liquidity Signal — Week of March 25, 2026
Direction: Expanding
Primary Driver: TGA drawdown — the Treasury spent down $38.4B from its account at the Fed, pushing that money directly into the banking system.
Implication: Bank reserves rose by $37.3B. The small uptick in RRP (+$2.8B) absorbed a minor fraction. Net financial conditions loosened this week.
What Actually Happened
The story this week is simple, and it starts with a tank.
