The Federal Funds effective rate increased to 4.09% from 4.08% between 2:36 AM and 3:06 AM UTC on September 24th, 2025, a rare movement that has sparked discussions about market liquidity. This marks the first upward adjustment in the Federal Funds rate during the current cycle. The move coincides with a continued slide in bank reserves and a rise in Federal Home Loan Bank (FHLB) advances, according to a social media post by SaveTradeInvest on X. These changes are being interpreted by some market observers as potential early indicators of funding strain within the financial system. The specific reasons for the rate adjustment and its broader implications are not yet detailed by official Federal Reserve statements within this reporting period.
