The bloomberg article below raises an interesting point, but I think the zerohedge article from March does a better job of addressing the Fed’s options. Anyone have further insight as to the Fed’s intentions? I know that they don’t plan on allowing the debt to roll off the books, but given the amount of debt maturing over the next few years, I can’t see them reinvesting into short dated treasuries.
If the Fed decides to reinvest the debt into longer-dated bonds, how is this not Operation Twist 2?
http://www.zerohedge.com/news/2015-03-08/feds-210-billion-hangover-no-one-talking-about