Yes, the Fed can create money out of thin air.
They print money (reserve NOTE), from which they loan to the national banks, at the rediscount rate (close if not zero recently), after 1 year, 2 years or 3, the national bank returns the dollar, plus the rediscount rate.
If a bank wants notes, they have to buy them.
After this scheme runs for awhile, the Fed ends up owning a large portion of the economy, depending on how fast money turns.
Before the crisis, their balance sheet was about $800 billion.
I don’t care which pocket the accountant puts the assists in (if you took accounting you know the rules for which side of the ledger you use are sometimes arbitrary).
Asset....liability....arbitrary? LOL!
85 Billion x 36 months = 3 Trillion.
Which is much less than the $14 trillion number you first mentioned.
did you ever take an accounting course?
It’s obvious you didn’t because double entry bookkeeping (asset / liabilities) is simply a rule book for keeping account.
You can do anything you want with it, especially if you are a semi-government organization exempt from auditing, and you are not afraid of a visit to the cross bar hotel