Federal Reserve balance sheet: https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren.

Federal Reserve balance sheet: https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren... The simplified version is that when the Fed wants to inject money/liquidity it buys assets (exchanging new "money" for the asset) in the open market. These operations are done within the financial system. The idea is that banks next loan the money to non-financial businesses which in turn stimulates economic activity. But that last part isn't happening, the injected liquidity is remaining within the financial system where it is being used to bid up the prices of existing financial assets rather than being used to create new ones.