From the origin of the Federal Reserve in 1913 through the end of 2007, the Fed created a net total of about $1 trillion in new money that it used to prop up governments and corporations. What is this figure now?
In 2008 during the Great Recession, the Federal Reserve began a policy called "quantitative easing" or "QE." This involved creating trillions of dollars of new money to purchase debt, stocks, and toxic assets like risky subprime mortgages from governments and corporations. The Fed does this mainly by creating new money electronically. The Fed stopped QE during 2014 and launched it again in 2020 during the Covid-19 pandemic. As a result, the Fed's inflation-adjusted assets grew from around $1 trillion in 2007 to more than $8 trillion in September 2021. This newly conjured money can decrease the value of people's income and savings by inflating the prices they pay for goods and services. It can also cause asset inflation, which increases the wealth of people who already own assets like real estate and stocks, while making these assets less affordable for others.