Strong statements about the effects of Federal Reserve actions on interest rates are common in the media and among academics. I’ve long been puzzled by such claims since the Fed seems to be a minor player in financial markets. In recent years total U.S. credit market debt, as reported in Federal Reserve Flow of funds tables, is in excess of $50 trillion. Prior to the financial crisis of 2008, total financial assets held by the Fed are less than $1 trillion, or less than two percent of the U.S. market. In response to the financial crisis of 2008, total financial assets held by the Fed jump to over $2 trillion and are almost $2.5 trillion at the end of 2010. This is huge by historical standards, but still less than five percent of the U.S. market. Many large banks (e.g., J.P., Morgan Chase, Bank of America, Citibank, Wells Fargo, etc.)…
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Utopia, you are standing in it! 
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