https://www.nytimes.com/2020/04/15/business/coronavirus-stimulus-money.html
... ...
That means when the Treasury makes payments on bonds held by the Fed — either paying interest or paying it off at maturity — almost all the money eventually moves back to the Treasury.
When a government bond is involved, the cash moves from one government pocket to another.
“Once the central bank buys them, it’s as if the Treasury never issued them in the first place,” said Dr. Kelton, who was an adviser to Senator Bernie Sanders’s 2016 presidential campaign. “For all intents and purposes, they’re retired.”
The CARES Act borrowing is, in many ways, the natural result of an evolution that began with the 2008 financial crisis. The bond-buying programs that central banks undertook around the world helped ensure low-cost financing for governments running giant deficits as policymakers contended with a deep recession and a prolonged period of lackluster growth. And despite constant, high-decibel warnings that such an approach would surely ignite a surge of inflation, it never happened.
