【The New York Fed states that bank reserves are sufficient, indicating no obstacles to continued balance sheet reduction】Golden Finance reports that the latest data from the New York Fed shows that the Federal Reserve has encountered no obstacles in continuing to reduce the size of its balance sheet. The New York Fed reported on Thursday that its reserve demand elasticity indicator was -0.15 on November 13, remaining stable compared to a month ago. The New York Fed stated in its report that "reserves remain ample." This index began public release a month ago, aimed at showing the degree of abundance or tightness of bank reserves. A shift to negative values may indicate an increase in the tightness of bank reserves, which directly suggests that the Federal Reserve is continuing to work to reduce bond holdings through quantitative tightening (QT). The New York Fed's indicator suggests that there is no immediate need to halt this process, aligning with recent comments from Fed officials and market expectations, which currently anticipate that quantitative tightening will end sometime next year.
