The role of the Federal Reserve has to do with monetary policy; that of the U.S. Treasury should be fiscal policy. Both are supposed to be independent of each other. However, they work hand-in-glove these days by political design.
Both are making basic errors to suit questionable short-term goals that have certain long-term danger.
One mostly hidden error both are guilty of, has to do with keeping reported governmental deficits artificially lower by stealth. In other words, the deficit picture is actually worse than is being shown. The Fed, by selling short-term bonds to hold longer-term bonds. The Treasury, by offering too large a percentage of short-term bonds to finance its outlays, when the longer-terms are now so artificially cheap.
In the future, Treasury costs to manage the deficit will therefore have to be far greater and the present deficit cost will prove even more humongous. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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