The US central bank keeps adjusting a rule that no longer matters

The US central bank is increasing the amount of money banks can hold without needing to keep reserves, and the amount that qualifies for a lower reserve rate. This change is required by law, but it will not affect banks because the central bank already set all reserve requirements to zero in 2020.

This document is a bureaucratic formality. The central bank is legally required to update these numbers every year, even though the underlying rule no longer applies. It highlights how old laws can persist, even when their practical effect has vanished. The central bank effectively ended reserve requirements in 2020, making this annual adjustment a paper exercise.