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No, Senator Paul: the Fed has paid banks $188B to lend _to it_, thus financing its multi-trillion dollar portfolio w/out letting inflation get entirely out of control. W/out interest in reserves, instead of parking funds at the Fed, banks would lend elsewhere, fueling inflation.*
23.7. klo 08.30
The Fed has paid $188B to banks NOT to loan money, 40% of that is going to foreign banks. It’s losing money while micromanaging rates. I explained why it’s time to rethink the entire system with @LarryKudlow.
*I’m no fan of this arrangement, which has been in place since October 2008, but it is not a simple matter of the Fed paying oodles of interest to banks for no reason.
@quill67 Sorry: should read "I'm not so much... ."
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