re: Fed balance sheet - a question

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No, it isn't. The Fed does not have to sell an asset in order to pay for something. It creates "money" every time it pays for anything, including the light bill.

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The money it creates goes down as a liability on their balance sheet. To remove that liability they have to exchange an asset for it.

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The Fed does not "issue" dollars.

It expands the money supply. It "creates" money.

The Treasury Department "issues" dollars by printing them. I don't think you understand that your your terminology is improper.

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The treasury department doesn't issue any dollars, they print currency. It doesn't turn into actual money till the fed puts it into circulation. Try reading a dollar bill, it says "Federal Reserve Note". I think you've got your terminology wrong.






BTW, you might want to inform U.S. Code that its using the wrong terminology:

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Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application.

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LINK