You aren’t correcting me. I said “part of.”
As you imply, the Federal Reserve actually does NOT make the majority of the medium of exchange. It only makes this small part.
The Federal Reserve makes M0 (the monetary base or high-powered money), a part of which constitutes the paper money part of the medium of exchange, and the other part of which constitutes bank reserves (almost all of which nowadays is in digital accounts).
The banks make the checking account part of M1. Bank deposits subject to check plus currency in circulation (paper money issued the Fed and coins issued by the Treasury) is the total of M1.
So, paper money is (a) made by the Fed, and (b) part of the medium of exchange. So, it serves the purpose of illustrating my point.
In the future, when you want to make a point, please say what the point is instead of merely saying that another person hasn’t said everything. Everything anybody says is always incomplete. Incomplete isn’t the same thing as wrong. Incomplete can not only be correct, incomplete can be useful for some purpose.
Ok, "part of". But you obviously missed my point. That the "part of" is in the "noise level" when it comes to inflation. So why mention it?
And comparing them to a "legal counterfeiter of money" is absurd. They are legally tasked with making real bills and coins. That would be like saying a painter who is making copies of his original painting is a "legal forger".