BREAKING: Bank reserves at the Fed dropped -21 billion last week, to 2.99 trillion, the lowest since January. This is one of the lowest readings since Q1 2023. This also marks the 7th consecutive weekly decline as liquidity has declined. US banking system reserves are a key factor in the Fed’s decision to continue shrinking its balance sheet (QT). According to the Fed, the ample-reserve level for smooth market functioning is 2.8–3.4 trillion. Is the Fed about to end QT?(The Kobeissi Letter)