I personally cashed in >$1m in CD's and bought stocks because of my fear of being left behind because of inflation. Many of my CD's were callable, so I really had no choice.
Money is generally added to the economy by the banks when they trade cash for debt (i.e. make a loan). The whole idea behind giving banks more reserves is so that they can make more loans, which are capped by the government at some % of the bank's reserves.
So really the government is tweaking things for banks to get around their own rules... but none of this matters if banks aren't near their cap in loans, which none of them are. So it really is just political theater to make it seem like things are getting done.
Once you understand that, the supression of interest rates makes a lot more sense, because it is another way to encourage new loans (and keep existing ones manageable).