I am confused about the federal funds rate. Does lowering federal funds rate res

Question

I am confused about the federal funds rate. Does lowering federal funds rate result in QE? It seems like, Lowered federal funds rate -> Opportunity cost for holding excess reserves by banks decrease -> Banks hold more excess reserves -> money multiplier decrease -> Money supply decrease and Decrease in money supply is not QE. Can anyone please help me with what is wrong with this logic? Thanks.

Someone just answered Opportunity cost for holding excess reserves by banks decrease -> Banks hold less excess reserves

but why? why decrease in opportunity cost will lead to less holding excess reserves? that answer didn't make sense to me..

Explanation / Answer

I have tried to answer your question on "Does lowering federal funds rate result in QE?"

The federal funds rate is the interest rate at which banks borrow reserves from one another. A low federal funds rate implies expansionary monetary policy by the Federal Reserve; a low interest rate environment for businesses and consumers; and relatively high inflation. Low interest rate environments stimulate aggregate demand and employment. Under expansionary policy, he Federal Open Market Committee purchases government securities, which increases the supply of money circulating in the economy and ensures a functioning banking system. Thus lowering federal rate funds result in quantitative easing (QE which is defined as the introduction of new money into the money supply by the central bank).

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