The U.S. Treasury sells $2 billion in bonds to the Federal Reserve. The Federal Reserve credits the Treasury's account by $2 billion. This exchange is best described as

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This exchange is known as monetizing the debt, where the Federal Reserve creates new money to purchase government bonds from the Treasury. It is a controversial practice that can lead to inflation if done excessively, but it is not considered financial impropriety or outside the limits set by Congress. It also does not reduce the money supply, as the $2 billion is now in circulation.

The US Treasury Sells $2 Billion in Bonds to the Federal