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US Bank Reserves Drop $59 Billion to Lowest Since January

US bank reserves fell to $2.93 trillion, with major bank analysts expecting the Federal Reserve to halt its $6.6 trillion balance sheet reduction this month.

Summary

US bank reserves declined by approximately $59 billion to $2.93 trillion in the week ending October 22, the lowest since early January, according to Federal Reserve data. Analysts from major banks anticipate the Fed will stop reducing its $6.6 trillion balance sheet later this month.

Terms & Concepts
  • Bank Reserves: The cash and liquid assets that banks hold, either in their vaults or at the central bank, to meet short-term obligations and regulatory requirements.
  • Federal Reserve Balance Sheet Reduction: A process by which the US central bank reduces its holdings of assets, effectively tightening monetary policy.
  • Trillion: A numerical value equal to one million million (1,000,000,000,000), often used to measure large sums in finance or economics.