The Fed prints so much money, Isn't the Fed afraid that the US dollar is worthless?

Many people wonder why Zimbabwe, Venezuela and other countries currencies depreciate rapidly and prices rise rapidly, when they print money. And the Fed printed so much money, why is the core inflation rate in the United States still maintained at 2% and there is no problem of hyperinflation? Usually, we only pay attention to how much money M0 is printed. The greater the growth rate of M2, the higher the domestic inflation level.

The Fed prints so much money, and it is not afraid of the depreciation of the dollar. The main factors are as follows:

First, the US GDP has indeed fallen due to the impact of the epidemic, and the Fed has also invested a lot of liquidity in the hope of stimulating economic growth. The European Central Bank continues to adopt more aggressive economic stimulus plans, and even sets deposit interest rates negative.

Second, if the Fed prints a lot of money, and if it buys domestic US goods, the U.S. CPI would rise and the U.S. dollar would become less valuable. However, the United States Dollar is a world currency. The Americans took colorful dollar bills and bought the commodities they needed from all over the world. The world commodity market is much larger than the US market. Many people may say that countries in the world can de-dollarize, but compared to the US dollar, the Russian ruble and the Iranian rial are less trustworthy.

Third, there are two main reasons for the stability of domestic prices in the United States: one is that Americans use relatively cheap daily necessities. This is mainly because developing countries imported a large number of cheap goods into the United States, which lowered the US CPI level. The other is the modernization of agriculture in the United States, and a large number of agricultural products are supplied to the American market. Now, 3% of the agricultural population in the United States feeds all Americans, and there is a large amount of exports every year. Therefore, in the United States, which is extremely rich in material, you don't have to worry too much that the US dollar will become less valuable in the United States.

Fourth, countries like Venezuela, Zimbabwe and other countries print banknotes and spend them outside, which will definitely cause currency devaluation. In 2009, the Fed implemented four quantitative easing policies, and the dollar index fell from 103 to 88 all the way. However, as soon as the U.S. economy began to recover, the Fed immediately sold U.S. Treasury bonds to recover the liquidity of the U.S. dollar in the market, and the U.S. dollar index rebounded quickly. So far, the Fed's balance sheet is relatively healthy, and no deterioration has occurred.

At the same time, we must also see that the Fed's printing of money is relatively good compared to other countries. What's more, the United States is very rich in domestic supplies and prices are relatively stable, so there is no need to worry about the consequences of printing money.