Yeah, really. The Fed is afraid. It pays a little interest to the banks on the excess reserves, and the banks can't pay interest because it will show they are kind of broke. It will nullify the interest the banks receive on the reserves and they must really need that money.
Yeah, really. The Fed is afraid. It pays a little interest to the banks on the excess reserves, and the banks can't pay interest because it will show they are kind of broke. It will nullify the interest the banks receive on the reserves and they must really need that money.