Fed/Waller: Reserves are still abundant, there's no need to slow down the pace of balance sheet reduction.

Foreks - Fed Governor Christopher Waller expressed his opposition to the decision to slow down the reduction of securities assets during this week's U.S. central bank meeting, citing that reserve levels in the banking system remain abundant.

In his statement, Waller emphasized, "Shrinking the Fed's balance sheet is a crucial part of normalizing monetary policy and reducing unnecessary reserves in the banking system. As we approach adequate reserve levels, it may be appropriate to further slow or halt the redemption of securities assets. However, in my view, we are not there yet, as reserve balances are over $3 trillion, and that level is quite ample." He further added, "There is no evidence from money market indicators or discussions I've had that the banking system is approaching adequate reserve levels."