The Fed doesn't create new base money, and they cannot really offer "stimulus" the way Congress can. They can just change the asset classes on their books. But

The Fed doesn't create new base money, and they cannot really offer "stimulus" the way Congress can. They can just change the asset classes on their books. But because of their unique position, the choice of those asset classes affects how much money ends up back in their reserve accounts. Only the Treasury can create new money. The proliferation of banknotes, which are considered legal tender, makes it a bit more complex and thus money in your checking account is money by some definition, but could not exist without base money. The Fed can change the incentives that drive the level of debt, and in that way manage the money supply. It is for this reason that some call CBDC "digital base money." It is the money that is in reserves or cash, not merely an IOU... even if that IOU is federally insured. But yea, monetary reserves held in Federal Reserve accounts is also digital already.