IN OTHER WORDS, THE FEDERAL RESERVE DECIDES TO EXPAND THE MONEY SUPPLY WHENEVER THE FED GOVERNORS THINK AN EXPANSION IS NECESSARY TO ACCOMMODATE ANTICIPATED AND/OR DESIRED FUTURE ECONOMIC (GDP) GROWTH.  

IN THEORY, EXPANSION OF THE SUPPLY OF (ELECTRONIC) MONEY IN CIRCULATION HELPS TO AVOID WAGE AND PRICE INFLATION, IF AND AS THE ECONOMY "GROWS"--AS CRUDELY DEFINED AND MIS-MEASURED BY GDP (IMO).  

THIS WAS THE CASE FOLLOWING THE NEAR MELTDOWN OF THE NATIONAL AND POSSIBLY THE GLOBAL ECONOMIES--DUE TO THE SUB-PRIME MORTGAGE LENDING DISASTER, WHICH BEGAN TO IMPLODE IN 2007--WHICH WAS FOLLOWED BY SEVERAL ROUNDS OF "QUANTITATIVE EASING" (QE) BETWEEN 2009 AND 2012.

QUANTITATIVE EASING REDUCED INTEREST RATES CHARGED BY THE FED--WHENEVER IT "LENDS" NEW MONEY INTO EXISTENCE TO THE PRIVATE, FOR-PROFIT BANKING INDUSTRY--TO NEAR ZERO.  (NOTE: "QE" WAS AMONG SEVERAL OTHER ATTEMPTS GOV'T AND PRIVATE ATTEMPTS TO AVOID THE WORST-CASE SCENARIO, I.E. THE NEXT GREAT DEPRESSION--SEE EXPLANATION BELOW*)