The Fed is negotiating with Congress

The Fed knows MMT time is arriving, they want a better deal than my 8 trillion buyout.  They want something closer to 4 trillion the size of the last recession balance sheet.  Congress might blink first. 

Congress is selling an asset, the Fed. At best, the Fed generates a hundred bill a year in fees to Congress. That is significant relative to their interest bill of 600 billion a year. So we have a net present value issue, and he best we can do is shift the spectrum.

The New Fed will deliver the negotiated amount over 15 years. But the New Fed cannot predict the moments of default, the market determines that by their hedges. The current Fed is cheap, how about we split the difference?