New York Fed says bank reserves are plentiful, showing no obstacles to continued balance sheet reduction

Gold ten data 22 November news, the latest data from the New York Fed shows that the Fed 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 index was -0.15 on November 13, which remained stable compared to a month ago. The New York Fed said in its report that “reserves are still abundant.” The index began to be publicly released a month ago to show the degree of abundance or tension of bank reserves. A negative turn in the number may indicate an increase in the tension of bank reserves, which directly indicates that the Fed is continuing to reduce the amount of bonds held through quantitative tightening (QT). The New York Fed’s index indicates that there is no immediate need to stop this process, which is consistent with recent comments by Fed officials and market expectations, and the current market expects quantitative tightening to end at some point next year.