The current FED Funds rate is 1.75%, so the FED charges member banks 1.75% for short term loans used supposedly to maintain banks required liquidity ratio, but banks are only willing to pay consumers somewhere between 0.1 and 0.2 % for short term deposits. If there was any competition for short term money, why would banks only pay consumers diddly squat when the alternative is almost 10 times greater? Because they are not. They are not stupid. The liquidity banks need is finding its way into banks through some other FED operation, maybe some sort of repurchase agreement. The low consumer short term deposit rates are a clear indication that the banking system is flush with funny money. The FED has not to any great extent tightened credit or it would show up in short term bank rates as the banks were forced to complete in the market for deposits. The FED pump is still running hard. The FED must still believe inflation is transitory so no real tightening is needed, they just aren't saying it out loud.