Fed Bonds
No panic, this is probably a scheme to address some of the problems caused by paying interest on excess reserves but as, B.B. has said recently, the Fed is not legally able to pay certain big providers like the GSEs. Better than letting the Fed issue bonds, change the law and let them pay interest to all fed funds suppliers.
B.B on excess reserves:
In principle, our ability to pay interest on excess reserves at a rate equal to the funds rate target, as we have been doing, should keep the actual rate near the target, because banks should have no incentive to lend overnight funds at a rate lower than what they can receive from the Federal Reserve. In practice, however, several factors have served to depress the market rate below the target. One such factor is the presence in the market of large suppliers of funds, notably the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which are not eligible to receive interest on reserves and are thus willing to lend overnight federal funds at rates below the target. We will continue to explore ways to keep the effective federal funds rate closer to the target.