Noticed the bolded section as well. Does that say banks are no longer required to have reserves? Isn't that something that has to do with the stability of a bank? Wasn't that lack of reserves a thing that exacerbated bank failures back in the eighties?
If banks aren't required to have reserves and can borrow fed money for very little then they can make loans for exceedingly low interest rates. If the government's spending is huge, due to Covid war spending then that can cause monetary inflation. If controlling inflation is done via increasing interest rates to the banks then the banks with no reserves are stuck with loans they've made that pay low interest. Is a new inflation/recession period heading our way?