In the week before it raised interest rates another 25 basis points to fight inflation, the Federal Reserve added more than $94 billion to its balance sheet. This was on top of the nearly $300 billion it piled onto the balance sheet in the first week of its bank bailout.
The balance sheet reveals that Fed has loaned banks nearly $400 billion in money created out of thin air in just two weeks.
The Federal Reserve added nearly $300 billion to its balance sheet in a single week as it kicked off its loan bailout program for banks.
In effect, the Fed loaned troubled banks $300 billion of new money that was created out of thin air.
In other words, we got $300 billion in inflation in a single week.