A quick question -Once QE ceases, are there plans to unwind the excess that they have created, ie selling off all of those soveriegn and corporate bonds that have been purchased?

they gonna let it "roll off"

Bernanke has just stated:Quoteeven after purchases end, the Federal Reserve will be holding its stock of Treasury and agency securities off the market and reinvesting the proceeds from maturing securities, which will continue to put downward pressure on longer-term interest rates

I'm under the impression they'll probably just hold on to their existing bond portfolio until maturity. There was a study done that shows it really won't make a big difference for the economy if the Fed sells their portfolio or holds on to it until maturity. If they start selling treasuries in a few years it will be at a huge loss so they won't be making any income to give back to the US Treasury, therefore just holding on to the bonds is the more politically acceptable option. The FOMC has plenty of other ways of reducing liquidity so I don't think it will be a big problem once we begin seeing inflation.