Is There Still a $5 Trillion in Excess Reserves?

Of that $5 trillion, yes, they have tied up only since mid 2021, about $2 trillion of that money. Excess reserves is not a factor with total quantity of money available. That doesn't mean it's being deployed in one way or another, but it's out there in the money supply. We would have had much worse inflation had the Fed not done with it,. though, because it's about the flow of money at the margin, not the stock of money and these are two important things.