The decline in bank reserves suggests that the Federal Reserve may be close to ending its balance sheet reduction

ChainCatcher news, according to Jinshi reports, the funding pressure in the U.S. money market remains high, and the reserves held by the Federal Reserve are gradually decreasing, indicating that the Fed may be close to ending its balance sheet reduction. Since the beginning of September, the overnight financing market between banks and asset management companies has been volatile, and ultra-short-term interest rates remain elevated. The latest data shows that bank reserves have fallen to just below $3 trillion, the lowest level since January.