Deposits are liabilities for banks and much of the injected money has found its way back into the Fed's balance sheet, exchanged for Treasuries the banks need(e

Deposits are liabilities for banks and much of the injected money has found its way back into the Fed's balance sheet, exchanged for Treasuries the banks need(ed) to maintain collateral requirements (offset deposit liabilities). It may have made passes through the 'normal' economy, but is now caught in a repo loop that has little to a negative impact on velocity, but is inflation negative.