The old 'Temporary lift caps' gimmick

Here the Fed wants non-member banks to take the mad dash for  Fed certificate of deposits.  The Fed is also considering selling some of its bonds, the soon to mature versions, when is 'normalizes' policy.  All of the rates paid out are coming from the earning remits back to treasury, and in a quarter, that amount is 20 billion, more or less.  They cannot reduce that by more than 10  billion without causing havoc with Congressional debt, causing another shut down in Congress. So they try and raise IOER to .5%, the money rushes in to grab the loot and suddenly the entire curve nearly doubles the lending rate for Congress.  Meanwhile, the remits ae cut in half. That would see interest costs double to nearly 20% of the budget, an impossibility for an idiotic Republican Congress to handle. Congress simply has not the brains to understnd this, and they are over run by Kanosians.

Federal Reserve officials in March decided to expand the boundaries of a program they intend to use to control short-term interest rates once they start raising them, likely later this year.
The overnight reverse repurchase agreement program is one of several tools the U.S. central bank will use to raise rates that have been pinned near zero since December 2008. Rather than cap the total activity at $300 billion per day, as previously planned, officials decided they might allow a higher limit, at least in early stages of rate increases, according to minutes of the March 17-18 Fed meeting, released Wednesday.
In normal times, the Fed increases or reduces small amounts of reserves in the banking system to manage interest rates. Because it has flooded the system with trillions of dollars in reserves, it is using new instruments to manage rates.
When it comes time to lift borrowing costs through the economy, Fed officials will raise the target range for their benchmark short-term interest rate, the federal funds rate, which is now set at zero to 0.25%.
The Fed will use two other interest rates to set the ceiling and floor of that range. The top will be the interest rate the Fed pays to banks on reserves, the money they park at the central bank. The bottom will be the interest rate paid through the overnight reverse repo program. Through this program, the Fed pays interest to money market funds and other firms on money they temporarily exchange for central bank-owned securities.