This investigative exposé reveals the hidden mechanics of Interest on Reserve Balances (IORB), a system that transfers billions from taxpayers to private banks. As the Federal Reserve raises interest rates to combat inflation, it simultaneously increases the payments made to commercial banks for holding reserves. This process diverts billions of dollars away from the U.S. Treasury—money that would otherwise fund public services like infrastructure and education. While everyday citizens face skyrocketing mortgage rates and credit card debt, the banking sector enjoys risk-free, taxpayer-funded windfalls. We examine how this policy socializes the costs of economic stability while privatizing the gains for the financial elite. Understand the structural inequality baked into our monetary system and why the cost of fighting inflation is disproportionately borne by the working class while protecting the balance sheets of the world’s largest banks.
