First, fed qe is not simply print money
So DL said is not true to recycle the money
QE is supposed to stimulate the economy by encouraging banks to make more loans. The idea is that banks take the new money and buy assets to replace the ones they have sold to the central bank. That raises stock prices and lowers interest rates, which in turn boosts investment. Today, interest rates on everything from government bonds to mortgages to corporate debt are probably lower than they would have been without QE.
but most banks did that slowly, in the mean time, leave most of money at Fed, just to satisfy the balance reserve
As long as the money won't get into market, it won't cause inflation, most of the money did not, so inflation is very mild
Big portion of money went to china reserve , because of trade deficit US has. and it will be like this no matter what Fed do, unlesss US is able to compete with China on making things
much of QE money didn't help the economy directly, that is why it is not effective and took so long to recover
anyhow, after years and over stimulation, now it is better than before, still not as strong as it should be.
yet QE cause fed balance become too huge, yellon want to reduce it, but fraid to tell that fed is almost broke , that is why raise rate is must
and each dollar US goverment make, 70 cents went to pay the interests, and democratics still want increase the benefits, those people just don't know anything
all other coutries want to do same as US, EU, China, Japan all are doing QE, and US want to dial back, both cause dollar becomes so strong, break the trade balance even more and economy
that is exactly how great recession begins in 30s and 70s
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