This from Gary North today, seems to be right in line with this topic
http://teapartyeconomist.com/2013/09/19/fed-does-not-control-federal-funds-rate/
This blew my mind., and it totally makes sense. I suppose then that the payment of interest on excess reserves is to put a floor on the fed funds rate and the increase in reserves due to QE will just DELAY the normalizing of the fed funds rate?
