I have recently given a little thought to the fact that the Federal Reserve Banks pay interest on excess reserves, which seems a peculiar thing to do when the Fed should be encouraging lending to credit-worthy borrowers.
To my mind, the United States is in a serious depression, which could possibly last to the end of this decade, if serious action is not taken to shorten it by expansionary monetary and/or fiscal policy.
The Fed currently pays 0.25% interest on reserves, which doesn't seem like much, but keep in mind that reserves are those portions of a bank's money that is not lent out. Interest on reserves is essentially a way of paying banks for not lending money to consumers or businesses. I suppose more reserves mean that less of the financial system's money is at risk, but the bigger issue at this time is surely the instability and risks that come from an economy operating well under its capacity, in terms of labor and capital utilization.
I suggest the Federal Reserve put America's money to work and, as Paul Krugman said, End This Depression Now!