It seems that the Fed has not started QE2.  What is taking it so long?  Here is a chart of the latest adjusted monetary base, which should go up with “quantitative easing”.  There is no monetary inflation yet, at least in the last 6 months.  Once the Fed starts with QE2, assuming it does, it will be interesting to see what happens to excess reserves.  It will also be interesting to see what happens to interest rates.