Wall Street analysts expect that the Fed will halt its quantitative tightening policy at this month's meeting.

On October 21, analysts judged that stopping the reduction of liquidity through the asset-liability management plan (QT) at the Federal Open Market Committee (FOMC) meeting on October 28-29 would help ensure the smooth operation of monetary policy at a technical level. These Central Bank watchers pointed out that increasing friction in the money market could threaten the Fed's ability to manipulate interest rates necessary to achieve its inflation and employment targets, as the foundation for quantitative tightening has already begun to waver. “Fed's mouthpiece” Nick Timiraos also stated that U.S. bank reserves have fallen to critical levels, and as the U.S. Treasury rebuilds its cash balance, the proportion of bank reserves to bank assets has recently dropped below 13%. (Jin10)