The Federal Reserve is in a panic; is the balance sheet reduction about to end? The Federal Reserve's bank reserves have fallen to the warning line of 12.2%. Good news is here: the Federal Reserve may end the balance sheet reduction process ahead of schedule, and the tough times may finally be over.
The Federal Reserve is in a panic; is the balance sheet reduction about to end? The Federal Reserve's bank reserves have fallen to the warning line of 12.2%. Good news is here: the Federal Reserve may end the balance sheet reduction process ahead of schedule, and the tough times may finally be over. Global liquidity will once again be abundant, and a strong U.S. dollar may be on the verge of a turning point, which would also bolster digital currency assets.
A very important piece of data was just released: the bank reserves on the Federal Reserve's balance sheet have officially fallen below $3 trillion. As of the week ending January 1 of this year, the bank reserves in the United States have reached $2.89 trillion, the lowest level since 2020. When this reserve is divided by the total assets of U.S. commercial banks, the ratio has already fallen to the warning line of 12.2%.