If the Fed buys 50% of T-Bond auctions, will they receive interests on the T-Bonds?

Discussion in 'Economics' started by crgarcia, Feb 16, 2010.

  1. The Fed is (more or less) part of the US gov't.
    The Fed buys T-Bonds.

    So, the gov't (US Treasury) must not pay interests on the T-Bonds the Fed holds?
    Even if they do, this is just transferring wealth from the gov't (Treasury) to the gov't (Fed)?