Today I went through the results of the Fed's balance sheet expansion over the past few months. Over the last three months, the Fed's balance sheet expansion (RMP Reserve Management Purchases) has shown some effectiveness. Bank reserves and dollar liquidity have started to rebound from the lowest point in the past three years. However, they haven’t returned to the normal range of dollar liquidity seen in the past three years. Normally, the lowest point for bank reserves over the past three years was $2.8 trillion, the highest was $3.6 trillion, and the median was $3.2 trillion. From a personal perspective, I think U.S. bank reserves need to exceed $3 trillion to be considered in the abundant range, and only when they surpass $3.2 trillion can we say they’ve truly entered the abundant and surplus range. For more detailed logic, check out the long article I’ve shared.