Market Is at Odds With Fed on Whether Bank Reserves Are Scarce
- Some strategists say banks already reached scarcity level
- Balances currently are $3.26 trillion in week through Oct. 25
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
The Federal Reserve and some market participants are out of sync on whether reserves in the banking system — a key determinant for the central bank to continue its quantitative tightening — have already reached the appropriate level of scarcity.
Bank reserves totaled $3.26 trillion in the week through Oct. 25, Fed data show.