Technically, the Fed has been providing most of the liquidity to the FDIC in the last 2 months. The FDIC isn’t liquid. This most definitely is “printing” money as the Fed generates money in the system when it lends.

If you look at the Fed’s weekly lending (H.4.1), you can see the FDIC has borrowed upwards of 170B in the last 2 months, not including FRC deal. In the FRC deal, FDIC is giving JPM a 50B term loan, which is most likely again borrowed from the Fed.

There’s some speculation why this had to happen, ie the Treasury cannot provide the liquidity due to debt limit, etc…

https://bpi.com/the-mysterious-footnote-7-to-whom-and-on-wha...