This has more or less happened already. The Fed is by far the largest buyer of treasuries right now. Total treasury supply has nearly doubled this year, and ye

This has more or less happened already. The Fed is by far the largest buyer of treasuries right now. Total treasury supply has nearly doubled this year, and yet foreign owned treasuries is only up 2% - meaning The Fed has bought close to 98% of it [1]. There is no treasury market. There is only The Fed. Considering that this market is about 30% of the size of the entire US economy, this should probably concern people. That's a large part of the US economy to be price fixed. Especially when you consider this essentially fixes prices for the housing market. [1] https://seekingalpha.com/article/4379154-fed-is-almost-out-of-u-s-treasuries-to-buy https://seekingalpha.com/article/4379154-fed-is-almost-out-o...