[Chgogal]

My point is, if the Fed Rate is low who will buy $1.6 Trillion of Bonds?

[cgbg]

There is a price for everything—the Fed does not set the final price for a US Treasury bond auction.

The Fed rate is just the rate it charges member banks for borrowing at the Fed window. The banks can take it or leave it—unless they are out of cash—in which case they will take it. ;-)

[jimwatx]

“My point is, if the Fed Rate is low who will buy $1.6 Trillion of Bonds?”

That’s exactly what I’ve been wondering. They are gonna have to crash the market before they can sell those Bonds.