[Wrightson Predicts Fed May End Balance Sheet Reduction This Week] Analysts at research institution Wrightson predict that the Federal Reserve may announce the end of its balance sheet reduction this week. The overnight lending market has recently shown tightening financing conditions, with bank reserves nearing equilibrium levels. The Wrightson team believes this move by the Fed may aim to avoid pressure in funding markets and notes that recent warning signals from the federal funds rate could prompt the Fed to take cautious action.