The Federal Reserve's reverse repurchase (repo) facility, which peaked at a record $2.5 trillion in 2022, has declined sharply to around $136 billion by mid-2025, indicating that approximately $2.4 trillion has returned to circulation. Recent Fed reverse repo operations saw 41 counterparties take $162.8 billion on May 21 and 37 counterparties take $173 billion on May 22. Concurrently, the Fed has reduced its balance sheet by $2.25 trillion since 2022, a 25% decline, although it remains elevated compared to pre-pandemic levels. In China, the People's Bank of China (PBOC) has been actively injecting liquidity into its banking system. On May 22, the PBOC sold 154.5 billion yuan ($21.5 billion) of 7-day reverse repos at a 1.4% rate and announced a 500 billion yuan ($69.54 billion) one-year Medium-Term Lending Facility (MLF) operation scheduled for May 23 to maintain ample liquidity. This MLF operation marks the third consecutive month of incremental injections, with a net injection of 375 billion yuan in May. Overall, China injected a net 36 billion yuan on May 23, with 106.5 billion yuan due the same day, resulting in a weekly net injection totaling 460 billion yuan. These measures provide fresh funds for Chinese banks to lend domestically, likely at lower interest rates as guided by the PBOC.