[The Federal Reserve May Stop Reducing Its Balance Sheet in October] Bank of America stated that the risk of the Federal Reserve halting the reduction of its balance sheet in October has increased. Economists pointed out that signs of funding pressure in the repo market might prompt the Fed to announce the cessation of its bond reduction program during next week's rate decision. Fed Chair Powell previously hinted at waiting for the right timing to end the balance sheet reduction, and recent repo market fluctuations could serve as a key signal. The Federal Reserve may offset maturing mortgage-backed securities by purchasing U.S. Treasury bonds to maintain the stability of its balance sheet size, with an estimated monthly reduction of approximately $20 billion in short-term Treasury supply.