The eventual level of demand for reserves is less certain but is highly likely to exceed pre-crisis levels when reserve balances averaged only about $ billion. Reserves are the ultimate “safe asset,” and demand for safe assets has increased substantially over time because of long-run trends, including regulatory requirements.
Other liabilities  21  For a more detailed discussion of the longer-run framework, see Lorie K. Logan (2017), “Implementing Monetary Policy: Perspective from the Open Market Trading Desk,” speech delivered at the Money Marketeers of New York University, New York, May 18, https://www.newyorkfed.org/newsevents/speeches/2017/log170518.