Thank you Sive Sir, for your detailed information.Hi mate, no it can't. First is, the Fed programme lets market to borrow the amount equals to nominal price of the bonds (i.e. larger) than market price and pay not 5.5% but lower, special rate. Second - This special programme is just around 105+ Bln. If you're speaking on Reverse Repo - this is only the 50%, but there is another one - banks reserves around the same 1.8 Trln that Fed is paying interest on. The difference between the rates is around 0.1-0.2%, so it absolutely doesn't resolve the problem.
Second is - US has 32 Trln in debt which is significantly greater than DRPO. Besides, we're talking only about interest payments that come to 1Trln per year (which is around the total value of whole DRPO size), but we also have the budget - outright government spending.
Thus, you're right - the revenues from DRPO are used on a profit size of the balance, but it takes very small part in total amount of spending.
Until H&S is valid we consider long scenario - above 1920-1925 area. Downside breakout turns us short with targets under 1900. But it is commonly speaking.