``Now, in order to withdraw reserves, the Federal Reserve must sell securities. But, if the Federal Reserve is increasingly being “asked” to fund mounting government spending programs by buying Treasury IOUs, that means the only assets it has for sale is overpriced toxic securities. Under those circumstances, do you think the Federal Reserve might have a hard time reducing its balance sheet and withdrawing reserves? Do you think the market knows it too? The last thing the Federal Reserve will want to do is dump these assets onto the market. ''

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