The Bains

What will they do with it? Since 2008 excess funds deposited with the Federal Reserve have grown from$1.8 billion to the above figure. This money could be loaned to businesses & consumers. Once the economy begins to rebound, the Fed will have to keep a sharp eye on the inflationary pressures that will no doubt occur. The job of the Federal Reserve is to (1) contain inflation & (2) encourage job growth. Since Dec. 2007 Feds have been working to stimulate the economy by providing low-cost money to get businesses & banks to loan, but instead now “excess reserves”.