Here’s the official line from the Federal Reserve, and I’ll quote it: “The Federal Reserve does not buy or sell gold.” That’s technically true, I guess. The Federal Reserve system may not buy anything, but the Federal Reserve Bank of New York surely buys and sells gold, and it buys and sells Treasury bonds, and it buys and sells foreign securities, and it buys and sells Telmex. It buys whatever it wants to buy or sell, because it has that authority. It has complete autonomy in that regard through the Federal Reserve Open Market Committee. They will tell you that “No, officially, the Fed does not buy or sell municipal bonds”. The reality is that the Fed can buy and sell whatever it wants, and they do it through the Federal Open Market Committee and the Federal Reserve Bank of New York.