You are right. There are a lot of misconceptions about how the Fed operates. As I said, there are positives and negatives about the Federal Reserve as an institution. It has fulfilled some of the promises it held at its founding, but it also has failed in major ways as well. Clarifying both the good and the bad is something would be a useful thing.
Personally, I dislike the role the Fed plays in the monitization of our currency. Most people have no idea how any of this stuff works, because it it generally in the government's interest to hide it through opacity and misinformation. I recently read a great story that has a rather interesting take on economics in general, and I've considered writing about it. If you are a R.A. Heinlein fan, you might want to check out "For Us, The Living". It was his first novel, that wasn't actually published until just a few years ago, though it was written in the mid 30's.