Why the Fed will not end its $85 billion-per-month bond-buying.

Why the Fed will not end its $85 billion-per-month bond-buying.

 The Fed buys bonds previously sold by the  U.S. Treasury to “members of the public”  (to some extent to individuals, but mostly  to financial firms, in the United States and  abroad) and to the central banks of other countries.

The government will need to borrow more,  and the U.S. Treasury will need to   sell more bonds.