The reserves of the U.S. banking system have fallen for eight consecutive times, dropping below $3 trillion. The Federal Reserve's balance sheet reduction may be approaching a turning point

The reserves of the U.S. banking system have declined for eight consecutive weeks, falling below $3 trillion for the first time, raising market concerns about whether the Federal Reserve will end its balance sheet reduction early. According to Federal Reserve data, as of October 1, reserves decreased by $20.1 billion to $2.98 trillion, marking the lowest level this year. The decline in reserves is related to the Treasury's increased borrowing, which has affected market liquidity. Federal Reserve Chairman Jerome Powell stated that reserves are "still ample," but recent funding market conditions suggest that the Federal Reserve may be nearing a critical point for ending balance sheet reduction