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I'm unclear when I see news articles about how the U.S. Treasury will borrow $2 Trillion in the second half of 2020, why would the Fed printing money result in a debt for future generations?

I can understand that if the U.S. is actually borrowing money from somewhere, it is debt that future generations would pay back.

But in this case, it sounds like the Fed is printing new money and the U.S. is borrowing from the Fed, I'm unclear how the next or future generations get involved with this debt.

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    $\begingroup$ News coverage of government debt is terrible, and makes no sense. There’s plenty of other questions on this website that cover similar topics. $\endgroup$ – Brian Romanchuk Aug 5 at 20:33
  • $\begingroup$ If the US is borrowing from the Fed, won't the US have to pay back the Fed? $\endgroup$ – user253751 Aug 5 at 20:50
  • $\begingroup$ @user253751 it will but Fed is government institution all its profit go back to treasury. Even talking about any debt in general as being paid by future generations lacks any nuance and it’s just appeal to emotions. It ultimately just boils down to throwing around opinions and moralizing which is off topic on this site. $\endgroup$ – 1muflon1 Aug 5 at 21:03
  • $\begingroup$ @1muflon1 Does the principal go back to the treasury? $\endgroup$ – user253751 Aug 5 at 21:04
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    $\begingroup$ @user253751 sorry I misread your question I was reading interest instead of principal... yes the principal is deleted but that’s what was borrowed to government in the first place. Also the debt is going to be rolled over unless fed will want to contract the money supply. Borrowing from fed is government essentially borrowing from itself for the purposes of conducting monetary policy. It’s an equivalent of you printing a bond on your home printer and then giving yoursel money for it and then paying interest to yourself back $\endgroup$ – 1muflon1 Aug 5 at 21:08

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