The Fed prints money and uses it to buy bonds. It can reverse this by selling the bonds, and destroying the money. (Of course, most of this "money" exists ele

The Fed prints money and uses it to buy bonds. It can reverse this by selling the bonds, and destroying the money. (Of course, most of this "money" exists electronically.) The bonds themselves pay interest to the Fed (which will take money out of circulation). Even if the Fed does nothing, the whole thing will reverse itself when the bond reaches maturity, and the principal is paid to the Fed.