How The Fed Has Been Quietly Tightening Ahead Of The Expected Rate Hike

The Federal Reserve extended its halt of Reserve Management Purchases, pausing a recent balance-sheet-driven easing measure. RMPs had been introduced after reserve levels fell below the roughly $2.9 trillion threshold considered ample, reversing some post-quantitative-tightening liquidity pressure. The continued pause signals less near-term Fed support for system liquidity.