The expanding and shrinking of the Fed's balance sheet over period of time is neither a surplus nor a deficit, because there's no spending involved. The Fed exp

The expanding and shrinking of the Fed's balance sheet over period of time is neither a surplus nor a deficit, because there's no spending involved. The Fed expands is balance sheet by purchasing interest-bearing government/agency obligations (bonds) with non-interest-bearing government obligations (money), and shrinks it by selling the interest-bearing obligations in exchange for non-interest-bearing ones. The balance of government obligations (issued bonds + issued money) remains the same. There's no spending involved.