Employers’ hiring was strong in February, but signs are emerging that job growth is slowing in some industries. Read More...
Reuters
Analysis-Declining U.S. bank reserves add wrinkle to contentious debt ceiling issue
A rapid fall in bank reserves held at the Federal Reserve, coinciding with an expected shortage of U.S. Treasury bills as the debt ceiling battle looms, has raised concerns from investors about potential stress in financial markets. Reserves, which are funds the Fed requires banks to hold as balances at the central bank, have fallen due to the impact of the central bank’s program to reduce its swollen balance sheet, known as quantitative tightening (QT.) Bank deposits, which are part of reserves, also dropped with customers seeking higher-yielding alternatives for their cash. Lower reserves constrain banks’ balance sheets, hampering their ability to lend to finance corporate growth and expansions, analysts said.
