Check this out https://www.federalreserve.gov/monetarypolicy/reservereq.htm Apparently there is no longer even fractional reserve lending. They can just lend out to kingdom come. They may as well have already turned the banking system into a cbdc based on infinite supply.
Yeah the Fed did that because banks havent been lending. Bank lending is flat since the GFC.
Banks arent going to lend into economic headwinds. They are also stifled by Dodd-Frank act.
That is the problem with commercial banks responsible for expanding the money supply, they will not do it in bad times.
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