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What does this mean? 0% Reserve Requirement?

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  • What does this mean? 0% Reserve Requirement?

    https://www.federalreserve.gov/monet...reservereq.htm

    I caught this on Twitter... seems like a legit link. The interpretation of the person who posted it... banks can loan infinite money. That can’t be right...

  • #2
    Re: What does this mean? 0% Reserve Requirement?

    Banks have not really been limited by reserves in a long time. Except, now banks do not have to worry about their reserves (Treasuries?) losing value in this crazy market and not being able to make loans later.
    https://fred.stlouisfed.org/series/EXCSRESNS

    Perhaps the FED is preparing for helicopter money?

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    • #3
      Re: What does this mean? 0% Reserve Requirement?

      Thanks for the explanation. It does sound like helicopter money is in the works. Just a matter of parties agreeing to terms.

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