[New York Fed President Says Fed's Halt to Balance Sheet Reduction Based on Market Signals] New York Federal Reserve Bank President John Williams stated that recent fluctuations in the overnight funding market indicate that the Federal Reserve's bank reserves are nearing an optimal level. In his prepared remarks at a conference in Frankfurt, he mentioned that pressures in the repo market and other signs suggest a shift in reserves from 'abundant' to 'ample,' and it is expected to reach an ample level soon. Williams also anticipated that short-term liquidity tools, such as the standing repo facility, will continue to play a key role in the money market to ensure the federal funds rate remains within the target range and to curb upward pressure on money market rates.