this is at least partly due to the money multiplier effect - a fed $1 isn't just a $1 after it's been distributed/reloaned/etc through the system: https://en.w

this is at least partly due to the money multiplier effect - a fed $1 isn't just a $1 after it's been distributed/reloaned/etc through the system: https://en.wikipedia.org/wiki/Money_multiplier https://en.wikipedia.org/wiki/Money_multiplier so you have fed $$ going into banks, which increases their ability to generate loans of future $$ > fed $$, which is then reinvested somehow