[dogman144]

It's been a hot, hot minute from my econ degree, but here goes...

I believe the big question of "Where is the inflation" has to do with lending excess reserves. The amount banks have to keep in reserve is set, but it changes. They can lend the balance after that, although there's a rate set by the fed that also works as a lending/holding incentive too.

"Excess reserves are capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors or internal controls. For commercial banks, excess reserves are measured against standard reserve requirement amounts set by central banking authorities"

So, this money actually hasn't really hit circulation. It doesn't really explain what's up with the SP (perhaps: credit based on reserve holdings, to hand wave a ton of complexity...), but it explains why there's no direct pipeline from Fed money prints -> my wallet -> CPI.

[jganetsk]

Repeat After Me: Banks Cannot And Do Not "Lend Out" Reserves

By Standard and Poor's

https://www.kreditordnung.info/docs/S_and_P__Repeat_After_Me...