The Fed Dilemma...Siphoning Off Bank Reserves

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Everyone pays attention to interest rates rising these days...while bank reserves (bonded by the Fed and held by banks) goes unnoticed. These reserves are being siphoned off (returned to the Fed from the bank's reserves) on a monthly basis. Remember QE1 and QE2 (these are not luxury cruise liners)?

Article excerpt:

to oversimplify, the argument essentially goes like this: The Fed’s bond buying, or quantitative easing, pumped trillions of dollars into the banking system to support the economy after the financial crisis. (The Fed bought bonds from banks and paid for them by crediting their reserves.) Now, with the economy on solid ground, that money is effectively being sucked out as the Fed reverses that policy. Currently, the Fed is paring its bond holdings by a maximum of $50 billion a month.

Article:
https://bloomberg.com/news/articles/2018-11-08/-fed-is-in-denial-how-a-4-trillion-dilemma-could-get-ugly

Wonder if this will be a boon for savers who might fill the void by being enticed by the bank for their cash? Your thoughts?

Here's a 4% CD offer (4% is the new 3%):
https://depositaccounts.com/banks/garden-savings-fcu/offers/