The US banking system is still awash in reserves, according to the New York Fed's first monthly measure. The first Elasticity of Demand for Reserves indicator released on Thursday by the New York Fed showed that bank reserves were still ample as of October 11. The data is the latest evidence that the Fed can continue to reduce liquidity in the financial system through its quantitative tightening program (QT). The performance of the data was expected by Wall Street strategists.