> The ones hoarding capital are the banks...get to keep the money the fed prints instead of the government
Banks lend more dollars than they borrow from the Fed (or depositors). They don't 'get to keep' money they borrow from the Fed, they repay it at the base interest rate.
They spend it before the inflationary effect occurs, so yes, it is a transfer of wealth from holders of dollars to banks.
The hoarding obviously isn't in cash, just look at their financial reports to know what they do with the money, and it largely isn't lending to businesses for expanding production. Since deregulation, much of the new money has gone to buying stocks. Not exactly helping the economy. As long as the stock market appreciates faster than the prime rate, it makes sense to borrow money from the fed to buy stocks. Especially if the fed is buying stocks too, keeping the market in perpetual inflation driven growth.
Banks lend more dollars than they borrow from the Fed (or depositors). They don't 'get to keep' money they borrow from the Fed, they repay it at the base interest rate.