From what I’ve read the Federal Reserve is currently paying banks a high interest rate to keep money in reserves and not do anything with it.
That’s not beneficial for our economy or our country.
Banks currently get 2.35% on their reserves at the Fed.
and not do anything with it.
Banks have no control over reserves in the system. Only the Fed and depositors have control.
Every bank could lend out every dollar of excess reserves they hold....and tomorrow all of that money would end up right back in the banking system as reserves. Still earning 2.35%.