FRANKFURT – The Federal Reserve and the European Central Bank may mop up as much as 90 percent of the money they pumped into banks over the last decade now that high inflation and interest rates make that extra liquidity unnecessary, a paper by a Fed economist showed on Thursday. The world's two largest central banks have been raising interest rates at a brisk pace to fight inflation and unwinding some of their massive bond purchases, which flooded banks with cash when price growth was sluggish and borrowing costs already at zero.

https://business.inquirer.net/406769/fed-ecb-may-slash-bank-reserves-by-90-in-new-era-of-high-rates

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