How does the federal reserve bank pump money into the econom

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How does the federal reserve bank pump money into the economy and help the economy how does this work can anyone explain ?

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Sometimes the Feds just lend it out to the biggest banks at very low (presently, near zero) interest rates, sometimes as "loans", sometimes "deposits", and sometimes the Feds pay the banks to take the money. With older "Savings & Loans", some organizations were paid a billion to take 3 billion from another org to make up, for example, a billion lost in a Silverado while a Neil Bush was on look-out: http://en.wikipedia.org/wiki/Savings_an ... s_and_Loan

The Resolution Trust Corporation was a pseudo-branch of the FDIC, both "operated" by the same director.

Bank reserve requirements can serve to "pump" money too.

The Feds "lending" money to the Feds from Feds' trust funds to finance Fed spending is another practiced method, but technically, "not done" as money. The names of methods are often changed to confuse everyone. The Comptroller of the Currency had laugh parties under Baby Bush to pump money.

Tadzio

Essentially, the Fed creates checking accounts on which checks may be drawn. Since the checks are in U.S. dollars they constitute legal tender which must be accepted (under penalty of law).

Printing Presses are so .... yesterday.... . Checking accounts can be instantly created by computer.

ruveyn