When you hear the Fed, it is referring to the Federal Reserve. The Federal Reserve is independent of the federal government. Essentially, it's the entity that c

When you hear the Fed, it is referring to the Federal Reserve. The Federal Reserve is independent of the federal government. Essentially, it's the entity that can print money. When it does, it doesn't just give the money away, but it injects the cash by purchasing assets and making loans. It also does the reverse by selling assets. So this money doesn't come out of the Federal budget. https://en.wikipedia.org/wiki/Federal_Reserve#Tools https://en.wikipedia.org/wiki/Federal_Reserve#Tools