With several recent increases in the (U.S.) Federal Reserve's target rate, and accompanying news releases, I was refreshing my knowledge on how those changes actually operate. In the course of doing that I tried to look up what current bank reserve requirements are and saw that as of March of 2020 the net transaction accounts reserve requirement was 0%, and is likely to remain so.
With reserve requirements at 0% it seems like normal open market operations don't have a lot to operate upon when trying to change the federal funds rate, which the recent target rate increases are an attempt to do. If the penalty for inadequate reserves is gone, what would banks be lending to each other overnight for?
Googling on my own has not produced much information on this. Are there other types/categories of reserve which still apply, maintaining the target rate/federal funds rate relationship? Is the primary lever of policy now the interest on reserve balances (IORB) creating a floor on acceptable yield for other dispositions of money, and if so, how does that interact with open market operations and the target rate?
I apologize if any of my questions or underlying understanding are way off base-- this is not my area of expertise at all.