Quantitative easing made commercial banks bigger by giving them short-term reserves at the Federal Reserve, but it did not increase their earnings because banks could not profitably deploy those reserves into long-duration lending like mortgages or commercial loans at the rates available.
causalpending
Speaker
Chris WhelanEvidence Quote
“it made them bigger they got a lot of short-term reserves at the fed which is cash but they couldn't do much with it”
Source
The Fed’s Ticking Time Bomb Is About To Explode | Joseph Wang & Chris Whalen— Forward GuidanceCreated: 8/11/2026, 1:23:06 AM
My Notes
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