Eccles Building Idiocy—Fed Pays Banks on Borrowed Excess Reserves

Not only do banks earn free money on excess reserves, they can borrow money and make guaranteed free money on that.

The Federal Reserve Bank of St. Louis discusses the Carry Trade in Liquidity.

https://moneymaven.io/mishtalk/economics/st-louis-fed-discloses-more-free-money-a-carry-trade-in-liquidity-Tm_fsBFG9EGsZXSSpbUPAA/