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FOMC minutes hint at end of quantitative tightening

FOMC minutes hint at end of quantitative tightening
The Federal Reserve's ongoing campaign of quantitative tightening (QT), aimed at reducing bank reserves, is nearing its target of $3 trillion. The QT has been partially offset by the reverse repo facility (RRP) balance. The release of the FOMC meeting minutes provided a hint that the Fed may end QT soon. Currently, the SOMA portfolio consists of 5% in T-bills, while treasury issuance is at 22.4%. The statement suggests insights into the Fed's future plans for its balance sheet and bank reserves.

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