Wall Street analysts expect that the Federal Reserve meeting this month will halt its quantitative tightening policy.

BlockBeats News, October 21st. Analysts believe that halting the liquidity drain through the balance sheet reduction plan (QT) at the Federal Open Market Committee (FOMC) meeting on October 28-29 will help ensure the smooth operation of monetary policy at a technical level. These central bank observers point out that the foundation of quantitative tightening policy has been shaken as intensified friction in the money market may threaten the Fed's ability to calibrate rates to achieve its inflation and employment goals.

The "Fed Whisperer," Nick Timiraos, also noted that U.S. bank reserves have fallen to a critical level, with bank reserves as a share of bank assets recently dropping to below 13% as the U.S. Treasury rebuilds its cash balance. (FXstreet)