Powell just dropped a key update on the Fed's balance sheet strategy. He's confirming that reserve levels have hit what they're calling "ample" — basically meaning banks have enough liquidity cushion in the system now. The interesting part? Any bond purchases going forward are purely for managing those reserves, not for pumping more money into the economy.

This matters for risk assets because it signals the Fed's tightening cycle might be reaching a stable phase. When reserves are ample, it reduces the odds of surprise liquidity crunches that tend to hammer volatile markets. For crypto traders watching macro conditions, this is the kind of backdrop shift that could dial down systemic stress — assuming they actually stick to reserve management mode and don't pivot again.