You said that
" if the Fed ceased reinvesting runoff, then reserves would automatically leave the system as bonds paid down and deposits left."
Can you explain this frase ? FED will not take the money of the bonds as cash ?
You said that
" if the Fed ceased reinvesting runoff, then reserves would automatically leave the system as bonds paid down and deposits left."
Can you explain this frase ? FED will not take the money of the bonds as cash ?