What agency buys and sells bonds on the open market?

The agency that buys and sells bonds on the open market is the Federal Reserve, which is the central bank of the United States. Through its open market operations, the Federal Reserve aims to influence money supply and interest rates by purchasing or selling government securities. This activity helps regulate economic growth and manage inflation. Additionally, other entities like investment banks and financial institutions also engage in buying and selling bonds, but the Federal Reserve plays a key role in the overall market dynamics.