“75 billion off the feds books per month while barrowing 1T per month mostly barrowed from the fed.”
For the Treasury to be “borrowing from the Fed” would require the Fed to purchase bonds directly from the Treasury.
They don’t, that’s prohibited in the Federal Reserve Act, and any Treasury purchases done by Fed are done in the secondary market.
In the early 1980s large bond buyers, “the bond vigilantes”, began fighting back against inflation before the Fed did by refusing to buy new Treasury debt or even selling their own holdings into the Treasury’s auctions.
I suspect that we haven’t seen anything like the Bond Vigilantes since then due to the influence of China in our debt market.
For the Treasury to be “borrowing from the Fed” would require the Fed to purchase bonds directly from the Treasury.
They don’t, that’s prohibited in the Federal Reserve Act, and any Treasury purchases done by Fed are done in the secondary market.
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True, not directly. But indirectly it can have much the same effect. What if the Fed wasn’t buying from the secondary market?