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The Fed doesn't control the money supply. That's the job of the Treasury.
by Anon1096 7y ago
The Fed doesn't control the money supply. That's the job of the Treasury.
- davidgh 7y agoBy controlling the amount of loans made to banks, the Fed controls the money supply. Money is created out of thin air (without a printing press) by issuing new loans, which is what the Fed does.