Sort of a follow-up to this question on the Politics SE, which asked about the US government cancelling debt held by China.
From the answers to that question, this kind of selective default is not much better than a full default, because the entity being defaulted on (China in this case) can seize US assets abroad as "payment" for the debt. How would this work if the US government decided to only cancel bonds held by the Federal Reserve? Since the Fed is part of the US government, presumably the government can decide not to seize its own assets (does that even make sense?) or retaliate in any way, and there'd be no consequences other than the fact that there's no more interest payment on debt.
Can the US government selectively default on debt held by the Federal Reserve? If yes, what are the possible consequences? I'm especially interested in economic consequences.
Related: What would happen if the US defaults on its debt? which deals with a wholesale default.