NEW YORK (Reuters) -The Federal Reserve’s effort to shrink the size of its balance sheet is moving into a more uncertain phase as a key proxy of excess liquidity has been very nearly extinguished.

Thursday’s WSJ cited a draft paper by Brian Sack (former manager of the FOMC’s open market desk at the NY Fed) and Joseph Gagnon (a former senior officer at the Board of Governors). The paper ...

* China c.bank asks banks about demand for reverse repos * But impact limited due to short duration * Market still expects RRR cut in July * Banks face regular RRR payment on July 5 By Chen Yixin and ...

For now, the US Federal Reserve is continuing its purchases of assets – primarily treasuries and mortgage-backed securities – at a rate of $85 billion a month, but purchases are expected to start to ...