"Tax Day Stress Test: Wall Street Prepares for Liquidity Strain"

Wall Street is preparing for potential stress in money markets ahead of the U.S. tax day on April 15, as tax-related outflows could impact market liquidity. Analysts anticipate significant outflows due to high capital gains from last year's stock market boom, potentially leading to a surge in short-term interest rates. The Federal Reserve and investors will closely monitor any signs of stress, as it could impact the availability of cash in the financial sector. The level of bank reserves and the Fed's balance sheet shrinkage will be key factors in managing potential liquidity challenges.