Fed does not create most of the money in the U.S. economy

 The private sector does. The Fed has tolerated dangerous changes in the way this is accomplished.

The Fed has helped to erode this system by tolerating, since the mid-20th century, the expansion of a wide range of nonbank money creators. 

It has extended its lender-of-last-resort backstop—the keystone of the monetary system—to dollars created by money-market funds, insurers (such as AIG), and even foreign entities via swap arrangements with other central banks

This is the important story to emerge from Lev Menand’s “The Fed Unbound: Central Banking in a Time of Crisis.”

Joseph C. Sternberg WSJ 1 August 2022

https://www.wsj.com/articles/the-fed-unbound-review-whose-money-is-it-anyway-11659391943

Commercial property investors - shadow banking sector

https://englundmacro.blogspot.com/2022/07/a-hot-housing-market-is-financial.html