Falling Bank Reserves & the End of QT

US bank reserves have dropped below the $3 trillion mark — a signal that the financial system’s liquidity cushion is shrinking fast. This decline could push the Federal Reserve to rethink its quantitative tightening plan, which has been steadily draining money from the system. If reserves get too tight, market stress could follow. So even if the Fed doesn’t say it outright, this might be the start of a quieter QT phase. Less liquidity drain could mean steadier markets going into year-end.

#FedPolicy #LiquidityWatch #MacroMoves