12:30 ET--By shrinking its balance sheet, a process that drains bank reserves from the financial system, the Fed has more or less reduced the level of bank reserves back to an ample level, New York Fed President John Williams says. "We're basically at it now," Williams says, referring to the theoretical level of ample bank reserves. Reaching that threshold encouraged the Fed to resume buying bonds for its balance sheet last week, what it calls reserve-management purchases. Williams was speaking to reporters in New Jersey on the sidelines of a gathering of bankers. He notes that bank reserves must gradually increase with banks' needs. ( matt.grossman@wsj.com, @mattgrossman)
(END) Dow Jones Newswires
December 15, 2025 12:30 ET (17:30 GMT)
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