Following the financial crisis of 2007-2009,banks had a glut of excess reserves.Because of this extraordinary amount of excess reserves being held by banks,the Fed's draining some of them through open market sales of Treasury securities would

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During the financial crisis of 2007-2009, banks accumulated a significant amount of excess reserves. When the Federal Reserve sells Treasury securities in open market operations, it typically aims to reduce these reserves, which can influence interest rates. However, because banks already had a glut of excess reserves, the marginal effect of the Fed draining some of them would be minimal. The banks' demand for additional reserves was already satisfied, so the reduction in reserves would not significantly change their lending behavior or the overall supply and demand for money. Therefore, the interest rates would likely remain unaffected by this specific action under those circumstances.

Following the Financial Crisis of 2007-2009,banks Had a Glut of Excess