Few questions: remind me again why injecting deposits Into the banking system with the corresponding assets parked in reserves is stimulative? Seems to me that if deposits minus loans are growing along with the Feds balance sheet, then the $$ isn't making its way into the economy. And wouldn't your chart fail to correlate if loan growth was more robust?

Why do qe purchases need to go into bank deposits? Can't a non bank seller of treasuries invest the proceeds in any asset they wish?

Doesn't the risk carry trade and subsequent unwind rest solely with the banks since they are the recipients of the qe proceeds?

Although the data I have is limited, the last time the Fed went on a tightening cycle in 2004, deposit growth more or less continued. Outside of qe unwind, why would the next tightening cycle be any different? Seems to be a consensus view that a surge of deposit outflows is likely when rates rise.

Thank you