The fed printed money can only be loaned, not just given away. This limits its direct impact on inflation. On the other hand, it certainly would cause inflation if it made it out of the banks. But banks will only loan if they think they can make money: only if there is economic growth to take advantage of, otherwise it just sits.
At this point we should not limit growth based on lack of liquidity, so it's probably not a bad thing that the fed is pumping money into the banks.
http://inflationdata.com/Inflation/Inflation/Money_Supply_an...
Because we are in a big "liquidity trap": http://krugman.blogs.nytimes.com/2013/04/11/monetary-policy-...
The fed printed money can only be loaned, not just given away. This limits its direct impact on inflation. On the other hand, it certainly would cause inflation if it made it out of the banks. But banks will only loan if they think they can make money: only if there is economic growth to take advantage of, otherwise it just sits.
At this point we should not limit growth based on lack of liquidity, so it's probably not a bad thing that the fed is pumping money into the banks.
I read that some in the fed suggest that interest rates should be raised. The expectation of future higher rates might encourage people to borrow and spend now: https://www.stlouisfed.org/publications/regional-economist/a...