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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