Deposits and loans at the Fed

They attempt to match along the series.  The idea is the rates paid out and rates taken in should maintain float.  Float is  unencumbered money, rates received or due count toward unencumbered money, it is not principal..  Float becomes gain or loss for the Fed.  It's a loss when the lending rate is too low or the deposit rate too high, relative to discovered inside information. Member banks  monetize inside information by borrowing and depositing with the Fed.  Rates, (gains and losses are only known ex post, after the members have stretched the float to the published limit.

Ben figured this out, Janet gets the hang of it. this was why Ben wanted rates on deposits.  What Ben does not want, nor Janet, is that all the borrowings came from one member bank, the US Congress.  Because  the member banks are going to wait for an eternity until the US Congress starts to pay off the loans.  The US Congress is so far off any money management equilibrium that they will force helicopter droppings sooner than we think, it has no inside information to monetize.

What are helicopter droppings (and pick up)

The Fed's function, take gains or losses when the (velocity, queuing, inflation,floast...) limit is reached. What evere black box enthuses you, that box triggers and ex post realization of rates. The is what currency bankers do.  But the system is supposed to work on shorter intervals, two years is nice.  The US Congress, thanks t dimwit  MIT kids, because an official member bank in their theory, says  the mark to market interval becomes 40 years, one generation; and the  gains and losses will accumulate over the period.

That is why we have the break up of the EU, the Bexit, and the populist revolt. MIT dimwits did not understand.  They should have known in 1974 when the option price theory came out.  That option theory relates future price to safe rate, that should have been a clue.  If DC is making 40 year promises, then the bankers are going top plan on a 40 year monetary cycle.  Let's  look
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What does the ten year rate tell us?

The private sector is waiting, waiting for the Swamp to figure this mess out.    They better figure it out soon because the savings and loan industry is disappearing.  If Congress has no clue then we end up with a stab;le dollar, used only in a few computers on the East Copast.  The rest of us will be on a variety of crypto currencies..