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A comment on Federal Reserve to increase interest rates by 75 basis points for the third time. Parent comment

Re:Federal Reserve to increase interest rates by 75 basis po... by MichaelConlon on Wednesday September 21, 2022 @03:45PM (#32930516)
While it is not technically "creating" new money it is expanding the supply of money (credit) in the economy. In the above example you still have $1000 owed to you and the company/person receiving that loan now has $900. That's a total of $1900 of "real" money generated from your $1000 deposit. The balance sheets net out to zero but there is in effect an extra $900 now in the economy.
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Re:Federal Reserve to increase interest rates by 75 basis po... by qeternity on Wednesday September 21, 2022 @05:09PM (#32931554)
You’re splitting hairs that can’t be split. Increasing the money supply is creating new money.

Money is created and destroyed all the time.

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