Bank reserves at the Federal Reserve have fallen by another $59 billion, slipping to $2.93 trillion the second lowest level since early 2023.
That number might sound distant, but it’s close to the same point that came right before the regional banking crisis last year. This steady decline is now stretching into a third straight month, showing that liquidity across the system is quietly drying up.
For big banks, it’s a warning to stay cautious. For smaller ones, it could mean tighter margins and tougher access to funding.
While markets remain calm on the surface, many analysts see this drop below $3 trillion as a sign that the financial system is getting thinner on cash, a reminder that the cracks never truly disappear.