The Fed has injected $2.7 trillion into the economy during COVID-19 to keep our economy from collapsing. 

How? It prints new $$, without adding to the national debt, then buys US treasuring bonds from banks.

Excellent graphic here  1/

Over last decade, the Fed has spent an average of $83 billion each year paying off the national debt with the interest it gets from those Treasury bonds. 

So, while the Fed can spend as much $$ as it needs, it’s limited on how it spends that $$ 2/

Things the Fed can pay for:
- Large-scale emergency loans for state + local governments 

Things the Fed cannot pay for:
- Grants for local + state governments 

So our local governments are left with impossible loans 3/

That’s where Congress must step in. 

We need to pass and send to the President the next major relief package to get money, not loans, to states & local governments, American families + workers. 4/4