How does the Fed inject money by buying bonds ? and 40 Bond Street

How does the Fed inject money by buying bonds ?

I read this statement below and it states that the Fed buys bonds to inject cash into the economy. How does this process work and what bonds are they buying ? Treasury bonds ? If this is the case, it seems like a big scam since the Fed/Treasury are essentially both Government anyway.



"First, the Fed will start modifying the language in its regular policy statements, gradually raising the prospect of an end to cheap money. It will ease up on the bond purchases it uses to inject cash into the economy. Finally, it will raise rates."


Bond best answer:

Answer by Yorky
Simple, when they buy bonds back they are paying for them with cash, so the institutions that were holding the bonds now have cash, and in the case of lending institutions they can lend it out.

Bond

40 Bond Street


Image by Susan NYC
40 Bond

---

Orignal From: How does the Fed inject money by buying bonds ? and 40 Bond Street