Bank reserves fall, suggesting the Fed may be nearing the end of its balance sheet reduction

According to ChainCatcher, Jinshi reported that funding pressures in the US money market remain high, and the Federal Reserve's holdings of bank reserves are gradually decreasing, indicating that the Fed may be nearing the end of its balance sheet reduction. Since early September, the overnight funding market between banks and asset management companies has been volatile, and ultra-short-term interest rates have remained high. The latest data shows that bank reserves have fallen to just below $3 trillion, the lowest level since January.