The US FED is draining short-term cash discreetly from the financial market. - Part 2

Alert: The US FED is draining cash massively now compared to April 2021.

http://sg-stock.blogspot.com/2021/04/the-us-fed-is-draining-short-term-cash.html

There was not a single transaction in the repo transaction because participants didn't need the cash but all the reverse repo transactions were fulfilled which indicated the participants were parking the cash with the FED in April 2021.  However, the US FED has increased its RRP massively to hundreds of billions in May 2021.

Repo (A collateralized short-term loan for participants): No transaction at all!

Reverse Repo (A collateralized short-term loan for the FED): All fulfilled!

What is the motive behind this US FED action and its impact?

The US FED is trying to support its USD with this reduction in liquidity.  Consequently, this will also reduce investments in the financial market.