Core Viewpoint - The Federal Reserve's balance sheet is projected to reach $6.2 trillion, approximately 20% of GDP, with reserves expected to hit $2.9 trillion, while overnight reverse repurchase agreement balances are anticipated to remain at low levels [1] Group 1 - The Federal Reserve's System Open Market Account (SOMA) head indicated that market participants surveyed estimate the balance sheet size [1] - The projected reserves of the Federal Reserve are expected to reach $2.9 trillion [1] - The balance of overnight reverse repurchase agreements is expected to stay low [1]

Core Viewpoint - The Federal Reserve believes that reserves remain ample and does not consider itself particularly close to halting quantitative tightening (QT) or balance sheet reduction [1] Group 1 - Slowing the pace of balance sheet reduction indicates a more gradual approach to monetary policy [1] - The Federal Reserve is fully prepared to provide dollars to overseas markets [1]