Since 2022, the Federal Reserve has sold $1.5 trillion in Treasuries, surpassing all foreign holdings combined, as part of its quantitative tightening efforts. This sizable sale raises concerns among analysts that it could create a long-term demand gap for U.S. debt and lead the country toward financial repression. Despite these massive divestments, foreign holdings of U.S. debt have remained stable. The video discusses the implications of this significant shift in U.S. debt management and market stability.