The vast majority of money is created by commercial banks via lending due to the "fractional reserve" model.
That is normally the case. Except its not.
The Fed is still purchasing MBS at an alarming rate; they are the largest single holder of mortgages in the nation.
Also, the banks are making their Net Interest Margin by placing their reserves at the Fed overnight—so they don’t HAVE to lend.
I understand how the banking system works. The Fed buying mortgage backed securities is not “normal.”