the fed went from holding mostly non interest-bearing liabilities cash in circulationfederal reserve notes (in 2007) to holding mostly interest-bearing liabilities today (in interest paid to primary dealers (for iorb) and mmfs (for reverse repos)) also note it was fucking illegal for the fed to fucking hold mbss before 2007 almost 100% of mbs issued during the two years of qe4 was purchased by the nyfed the nyfed was holding 40% of all mbs at the end of 2022  also note that fiat notes (which are a form of any fucking national currency) are supposed to be a non-interest bearing liability for a central bank. this is because they are supposed to just be a tool to facilitate commerce/trade, not to hide capital losses by the central bank
United States