evidence: In May of 2022, the FOMC laid out its plan for reducing the size of the balance sheet.5 The execution of that plan is proceeding as we had envisioned, with securities holdings decreasing and take-up at the overnight reverse repurchase facility declining. Federal Reserve staff continue to monitor several indicators of abundance of reserves, and they all signal that the current level of reserves remains safely far above the level consistent with the FOMC’s ample reserves regime.6 We’ve so far reduced the size of our balance sheet by about $1.5 trillion. The next step in the execution of the plan will be to slow the pace of decline in our securities holdings.