No single country or institution has reduced its Treasury holdings more significantly than the Fed in the past three years.

Eventually, the Fed — or another arm of the U.S. government — will need to step back in as the dominant buyer of Treasuries, in my view.

Ending quantitative tightening does not itself overhaul Treasury demand structurally, but it’s a necessary part of moving toward that scenario.

More importantly:

The US is steadily moving toward a framework of full financial repression, and the Fed’s policy stance will need to reflect that shift.