US Bank Reserves Decline Further Below Key $3 Trillion Mark

The US banking system’s reserves, a key factor in the Federal Reserve’s decision to keep shrinking its balance sheet, tumbled for the eighth straight week to a new mark below $3 trillion.

Bank reserves fell by about $20.1 billion to $2.98 trillion in the week through Oct. 1, according to Fed data released on Thursday. That’s the lowest level since January.