According to the Wall Street Journal, the Federal Reserve has implemented a plan to reduce its balance sheet over the past three years but has now decided to slow the pace of the reduction. Why this change? It is likely because the Fed is trying to avoid a repeat of what happened in 2019. At that time, the Fed was also reducing its balance sheet, but the reduction led to tension in the overnight financing market, with insufficient market liquidity, which forced the Fed to make a 180-degree turn and expand its assets again. Due to the interaction between the Fed's balance sheet reduction plan and the need for Congress and the White House to raise the debt ceiling, the likelihood of small problems in the market will increase in the coming months.