A 56% increase in bank reserves with the FED. from Jan 2020 to Nov 2020.
Morality of the story: If on a particular period, the government spends more than it taxes, reserves have been added to the banking system. This action typically leads to a system-wide surplus of reserves, with competition between banks seeking to lend their excess reserves, forcing the short-term interest rate down to the support rate . At this point, banks will simply keep their reserve surplus with their central bank and earn the support rate. Note: If I am not mistaken the support rate in the USA is at present time .10%.
