Reserves at Fed Sink Below $3 Trillion to the Lowest Since 2020

 

• The $326 billion drop in week to Jan. 1 was biggest since 2022
• Officials have been shrinking balance sheet since June 2022

The US banking system’s reserves, a key factor in the Federal Reserve’s decision to keep shrinking its balance sheet, tumbled below $3 trillion to the lowest since October 2020.

Bank reserves fell by about $326 billion in the week through Jan. 1 to $2.89 trillion, according to Fed data released on Thursday. That’s the largest weekly slide in over two-and—a-half years.

https://www.bloomberg.com/news/articles/2025-01-03/reserves-at-fed-sink-below-3-trillion-to-the-lowest-since-2020