Core Viewpoint - The liquidity in the money market has tightened over the past three weeks, and the benefits of continuing the balance sheet reduction are limited [1] Group 1 - Federal Reserve Chairman Powell indicated that bank reserves are only slightly above adequate levels [1] - The decision regarding the balance sheet aims to provide the market with some time to adjust [1]

Core Insights - The Bank of England's executive director Benjamin emphasized the necessity for major banks to maintain sufficient "reserve ammunition" to secure additional reserves during times of stress [1] Group 1 - Major banks are required to have adequate reserves to navigate periods of financial pressure [1]