Any loan creates money. It’s not the Federal Reserve. Every bank ever individual that loans creates money.
It works like this.
Sam has $200.
He loans it to Fred.
Sam now has a receivable of $200 and Fred has cash of $200 and a debt of $200. Voila Sam’s Receivable of $200 and Fred’s cash total $400, you’ve just printed money out of thin air.
Not even. The Reserve does not have the money it loans. Duh.