Why inflation is still reported low? Recently I heard from Richard Koo's video, that central banks have injected so much money to the banking system. There is enough reserves in the U.S. banking system to increase money supply 16 times. In other words, according to Richard Koo, the inflation should have been around 1600% over the last 10 years. However, as per the inflation reported by the federal reserve, it is still under 2%.

I understand that the asset prices have gone up in the last 10 years in terms of stock prices and housing prices. But why is inflation still low?
There's a pretty simple answer to that.  The money injected into the banking system does not acquire any velocity- it just gets redeposited at the Fed.  If they had spent the same amount of money into the general economy in the form of goods and services, then you would have seen higher inflation.