The lender of last resort has begun lending, which means regular lenders ran out of money, and the Central Bank has to bail them out. Regular lenders can only lend out new funds if their clients can afford to pay back the loans they took out (which is not the case right now). 

To solve this, the Fed is printing fake money to pay back unpayable debt, which happens in crisis times. 

1. Spike in 2008 (big banks collapse)

2. Spike in 2020 (covid scare)

3. Starting to climb again in 2022

In 2020, no banks collapsed, and the Central Bank saved them, but inflation was low. Now that inflation is high, interest rates are high (stagflation), and the Fed is lending, we are truly fucked. The USA also recently printed over $1.7T for the war, by the way. And that won't help curb inflation. Remember, Powell said we have to wait until more people get fired before the Fed can lower interest rates. 

If more people get fired, it means less money for the lenders. Less money for the lenders means we will witness many banks and debt companies fail because the Central Bank can't bail ALL of them out.