As of March 2025, Bank Reserves at $3.25 Trillion
Reserves got almost to the low levels of early 2023 when we had the mini bank crisis.
This could mean FED to drop QT soon since they have constantly said their focus is on maintaining ample bank reserves to avoid any liquidity issues.
- Curentlly declining at a rate of -7% y/y
- Christopher Waller (FED governor) has previously said balance sheet runoff could start to slow when bank reserves get to 10-12% of [GDP (Gross Domestic Product (GDP) | FRED | St. Louis Fed), this would mean ~2,75 -3.4T reserves
