Because they're paying such a big interest rate that the banks are happy to park their money there. And in fact, they're not just doing the 10% reserves. They're putting a bunch more capital there. Right now, today, The Fed is paying 4.4% to the banks to just park their capital with the Fed. So in 2024, last year, the last year, the Biden administration, The Fed paid $168 billion in interest on reserves. That's taxpayer money that went straight to giant Wall street banks. (17:22–17:29)
CLAIM
Asserts that the Federal Reserve is paying banks 4.4% interest to keep their capital with the Fed.
This is an excerpt from a raw transcript. The assertions have not been audited or verified. Tap the video to view the source footage and understand the context.
