UPDATE 1-New York Fed: Inflows to reverse repo facility surge, hitting $1.018 trillion

The Federal Reserve Bank of New York said on Friday it accepted $1.018 trillion at its overnight reverse repo facility, as inflows to the central bank liquidity facility surged on the final trading day of the year. The Fed's reverse repo facility exists to put a floor underneath short-term interest rates and is a key tool in the Fed's efforts to influence the economy to achieve its employment and inflation mandates. The facility has seen big inflows over recent years amid strong Fed stimulus work and peaked at a record $2.6 trillion on Dec. 30, 2022.