Banks swimming in cash reserves, but future spending uncertain.
Excess reserves, extra cash banks keep beyond what they need, have increased a lot since the financial crisis. Banks find it more appealing to hold excess reserves now because it costs less, thanks to the Federal Reserve paying interest on them. Banks holding extra reserves in response to risks and interest rates means they probably won't suddenly lend a lot more money. But it's uncertain what banks will do in the future if conditions change.