Do proceeds of maturing Treasuries on Fed’s Balance sheet go to the Treasury?
I will apologize in advance for asking this question because I am pretty sure Cullen has explained this, but after looking at several of Cullen’s past posts on this topic, I didn’t find the precise answer. I know that the Fed can just sit on the bills, notes, and bonds it has and let them mature. When those Treasury securities mature – say (for example) $10 billion in a given month – does the $10 billion go to the Treasury, thus making the $10 billion available for spending by the government?
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