I do not think a shortage of bank reserves is a problem right now. CheckI need to update my Fed Balance Sheet series. Maybe I will get to it this weekend.
Reserve balances with the Federal Reserve are $493,633 million. That is up somewhat from a year ago. Well, a bit more than somewhat. It is up by $484,992 million.
The Fed has started to pay interest on reserve balances. I have not followed this very closely, but it seems the Fed wants the banks to hold excess reserves because it allows them to control the Fed funds rate better.
The stock market has had two days of large losses. I sure hope that is not because the market is worried about the economic policies of the president elect.