US - Federal Reserve reduced the reserve requirement for all depository institutions to zero - March 26, 2020

[sharon sanders]

This step gives financial institutions more flexibility in how they manage their cash. It also implies that the federal reserve stands ready to bail them out.


Reserve Requirements


As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.

• FAQs

The following content explains the Board’s authority to impose reserve requirements and how reserve requirements were administered prior to the change in reserve requirement ratios to zero.

more...

https://www.federalreserve.gov/monet...reservereq.htm

 

[Emily]

Might be a good time to make deposits structured in such a way as to have full FDIC coverage if you are fortunate enough to have that much cash.