Fed Liquidity Watch // Issue #7 - Weekly H.4.1 Breakdown
This week's H.4.1 report showed expanding liquidity. The calendar says enjoy it while it lasts.
Every Thursday, the Federal Reserve publishes a document most people have never heard of.
It’s called the H.4.1. Eleven pages of dense tables. No charts, no commentary, no headlines. Just numbers that describe the plumbing of the entire financial system.
This week, the plumbing moved.
Reserves rose. The Treasury’s cash pile fell. And for the first time in several weeks, the direction of liquidity was clearly positive.
Here’s what the numbers actually say.
Quick Update — Week Ending April 2, 2026
Reserve balances with Federal Reserve Banks: $3,064.5B — up $28.4B from last week
U.S. Treasury General Account (TGA): $803.6B — down $33.9B from last week
Reverse repurchase agreements (RRP): $339.6B — up $5.5B from last week
Liquidity Signal — Week of April 1, 2026
Direction: Expanding
Primary Driver: Treasury General Account drawdown of $33.9B released reserves back into the banking system.
Implication: Liquidity conditions improved this week. However, with April tax season approaching, a significant TGA rebuild could reverse this quickly in coming weeks. Watch the direction carefully.
What Actually Happened
Start with where the money came from.
