Bank reserves decline, suggesting the Federal Reserve may be nearing the end of balance sheet reduction

ChainCatcher news, according to Golden Ten Data, funding pressures in the U.S. money market remain elevated, and the Federal Reserve's bank reserves are gradually decreasing, indicating that the Fed may be approaching 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 remain high. The latest data shows that bank reserves have dropped to just below $3 trillion, the lowest level since January.