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N K's avatar

I’m not sure it makes sense to look at the fed in isolation. The fed and the treasury are both ultimately just the federal government and so they need to be looked at in aggregate. For example, treasury could sell a 30y bond, and the fed buys it. Or treasury can sell a bill. These are economically equivalent to the govt in aggregate. In the first case the fed will have some pnl but it doesn’t really matter.

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