The Federal Reserve faces no obstacles in continuing to shrink the size of its balance sheet, according to the latest data from the New York Fed. The New York Fed reported on Thursday that its Elasticity of Demand for Reserves indicator was -0.15 on November 13, remaining stable compared to a month ago. The New York Fed said in its report that "reserves remain abundant". The index, which began public release a month ago, is designed to show how abundant or strained banks' reserves are. A shift to negative numbers could indicate an increase in strained banks' reserves, a direct indication of the Fed's ongoing efforts to reduce its bond holdings through quantitative tightening (QT). The New York Fed's indicators suggest that there is no immediate need for this process to stop, which is in line with recent comments from Fed officials and market expectations that quantitative tightening will end sometime next year.