The Fed purchas the Treasury Securities at auction to keep interest rates low.
The Fed just outbids other buyers. Since the Securities are sold at a discount the higher price gives lower interest rates.
The Fed does not buy Treasuries at auction; they buy them in the secondary market.
Are you saying buying from ourself and selling to ourself is a good thing?
Like I said, I never understand the bond market but this seems smelly, like something a financial scam artist would do.
Someone must agree, as the AAA rating has been dropped by at least one rating service.