CITIC Securities: The current environment of the U.S. financial market does not meet the conditions for tapering

According to Jinshi reports, Citic Securities research pointed out that although Walsh mentioned the policy direction of interest rate cuts and balance sheet reduction multiple times in 2025, considering that the liquidity pressure in the U.S. money market eased in January, the current reserve ratio to GDP is still around 10%, and the Fed's assets account for about 20% of GDP, close to pre-pandemic levels.

Therefore, overall, the current U.S. financial market environment does not have the conditions for balance sheet reduction.