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[New York Fed Says Bank Reserves Are Sufficient, Showing No Obstacles To Continued Balance Sheet Reduction] The Latest Data From The New York Fed Shows That The Federal Reserve Has Not Encountered Any 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, Which Remained Stable Compared With A Month Ago. The New York Fed Said In Its Report That "reserves Remain Ample." The Index Began To Be Publicly Released A Month Ago And Is Designed To Show The Abundance Or Tightness Of Bank Reserves. The Shift To Negative Numbers May Indicate An Increase In Bank Reserve Tensions, Which Directly Illustrates The Fed's Continued Efforts To Reduce Bond Holdings Through Quantitative Tightening (QT). The New York Fed's Indicators Show That There Is No Need To Stop This Process Immediately, Which Is Consistent With Recent Remarks By Fed Officials And Market Expectations, Which Currently Expect Quantitative Tightening To End Sometime Next Year
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