📍The deposit reserves at the Fed continue to fall

📌 Bank reserves at the Fed fell to $2.98T (, a decrease of $20.1B last week ), marking the eighth consecutive week of decline - the lowest level since the beginning of 2025.
📌 The U.S. Treasury continuously increases debt issuance to rebuild the TGA, sucking liquidity out of the system + The Fed maintains QT, shifting from surplus to "just enough minimum".

The thinning liquidity of the system will lead to more volatility in short-term interest rates in the future. Although the reserve target is nearing a reasonable level, Chair Powell has not signaled a halt yet. The Fed wants the balance sheet to be "as small as possible" ( Fed Waller estimates the level at $2.7T )