The US FED is under tremendous pressure to conduct QE tapering sooner than expected. Here's why!

Daily Reverse Repo: 

From the above chart, the US FED is getting a daily inflow of funds (a few hundred billion) instead of the FED's pronouncement to inject US$120B (Treasuries & MBS purchases) every month into the financial system.  This shows that bank lendings have slowed to a crawl and investors cannot find attractive returns elsewhere but to return the excess fund to the US FED.  This denotes excessive liquidity in the US financial system which the US FED has to address.  In a nutshell, there is no purpose to inject US$120B every month now as the US FED is getting a few hundred billion back daily.

We had already highlighted this in April 2021.

http://sg-stock.blogspot.com/2021/04/the-us-fed-is-draining-short-term-cash.html