I am familiar with the Federal Reserve monetizing US govt debt trough open market operations with primary dealers.
But does the Federal Reserve also buy govt bonds directly from the US Treasury? I was looking over the FRBNY website for evidence of such activity but no luck. “Creating balances” on the governments account with the Federal Reserve as “payment” for the bonds it bought would be the most direct and concealed way of creating money for the federal government. I suppose if it was being done we could hardly expect them to advertise it.
Can anyone point out some reading material regarding this?