The Effects of the Federal Government's Rate Raising on the Banking System

When the Fed were to raise interest rates about like 5%, well, then those reserves, those overnight loans, they're going to have to pay 5%. So you're increasing the federal government's interest rate costs. If there was no Kiwi and you were just doing 10-year treasuries, then your coupon interest rate payments wouldn't have changed even at that level. But now it does directly. The actions of the federal government and the Fed over the past two years have just kind of filled the banking system with deposits so that the banks don't really have to compete for funding anymore.