<p>Reserves are drained (destroyed) when the Fed sells the debt or allows it to be paid off.</p>

CC BY-SA 3.0
2015-05-18T18:41:43.253Z
Hi! Welcome to EC.SE! Thanks for the answer. You could improve it by providing a source or explaining your answer in more detail.
jmbejara
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2015-05-17T20:50:08.263Z
2015-05-17T20:50:08.263Z
user2781942
<p>Banks currently have 2.7 trillion Federal Reserves that they hold at their Federal Reserve account. It's part of the monetary base and these reserves were created when the Fed purchased bonds in their QE program.</p>

<p>What will happen to these reserves? How will they get back to the Fed? How will they be retired and won't they have to be used to pay off the treasury bonds the Fed is holding?</p>

<p><a href="http://research.stlouisfed.org/fred2/series/NONBORRES" rel="nofollow">http://research.stlouisfed.org/fred2/series/NONBORRES</a></p>

<p>That's a link to it.</p>

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2015-05-15T12:04:33.810Z
"these reserves were created when the Fed purchased bonds in their QE program": source?
VicAche
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2015-05-15T12:09:18.303Z
http://www.newyorkfed.org/research/staff_reports/sr380.pdf p11 tends to say the story is a bit more complicated
VicAche
<currency><banking>
What will happen to the reserves at the Fed?
Jon
# What will happen to the reserves at the Fed?

(Asked by: username_0 on 2015-05-15)

Banks currently have 2.7 trillion Federal Reserves that they hold at their Federal Reserve account. It's part of the monetary base and these reserves were created when the Fed purchased bonds in their QE program.

What will happen to these reserves? How will they get back to the Fed? How will they be retired and won't they have to be used to pay off the treasury bonds the Fed is holding?

<http://research.stlouisfed.org/fred2/series/NONBORRES>

That's a link to it.

**Tags:** currency, banking
> **Comments:**
> **username_1**: "these reserves were created when the Fed purchased bonds in their QE program": source?  
> **username_1**: http://www.newyorkfed.org/research/staff_reports/sr380.pdf p11 tends to say the story is a bit more complicated  

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## 1 answers

### Answer by username_2 on 2015-05-17. Score: -1

Reserves are drained (destroyed) when the Fed sells the debt or allows it to be paid off.

> **Comments:**
> **username_3**: Hi! Welcome to EC.SE! Thanks for the answer. You could improve it by providing a source or explaining your answer in more detail.  

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