[Wall Street Responds to Money Market Pressure, Fed May Signal Rebuilding Liquidity Buffer]
As the end of the year approaches, Wall Street banks are preparing to address the rising pressure in the money market. Analysts suggest this may prompt the Federal Reserve to consider rebuilding a liquidity buffer in the $12.6 trillion market. Federal Reserve policymakers will hold a meeting this week, and current indications suggest that reserves within the banking system are no longer sufficient. Market participants believe policymakers should take measures such as resuming direct securities purchases to replenish reserves. It is expected that Federal Reserve Chair Powell may provide clues at the conclusion of the meeting on Thursday (UTC+8).