Fed already plans to regulate banks to have more liquidity, i.e., buy government bonds...
So as the Fed has bought up all the more valuable private sector bonds, banks will be forced into buying freshly printed government bonds.
Private sector will be bilked again.
There is right now more liquidity than can be handled. The banks have about $1 Trillion plus parked at the Fed.
If the Fed tries to unwind their portfolio the buyers may very well be the banks.
The reason the Fed has bought all that paper is to try and control Interest rates for Treasury Debt.
Any spike in rates, say 80 to 100 basis points, will add another $100 TO $200 Billion to the Interest cost in the Budget and before long all Tax revenues will be going to pay that cost.
The Fed has boxed themselves in along with the rest of us.