The Federal Reserve acts algorithmically. New money is only created when new loans are requested by big commercial banks, and those loans are demanded on behalf

The Federal Reserve acts algorithmically. New money is only created when new loans are requested by big commercial banks, and those loans are demanded on behalf of retail loans, which are initiated in proportion with economic activity by economic actors. The only discretion involved is the interest rates on those loans, which indirectly controls people’s willingness to take out loans.