And, if you look carefully throughout U.S. history after 1913, you will see that, in spite of the Fed being created to thwart economic sickness, it never the less occurred often. 1980's being a prime example.
Some say that the Fed KNEW about it all yet allowed it to happen all the while pretending to struggle against it. There are several websites that dive into the back room activities of the bankers in these "crashes".
The Fed won't allow hyperinflation.... much. They certainly won't allow the dollar to fall precipitously into insanity because the bankers would suddenly become very poor.
The American economy is suffering right now. But military spending is still really high. In October 2020, the public debt of the United States was around 27.13 trillion U.S. dollars, over 4.1 trillion more than a year earlier, when it was around 23 trillion U.S. dollars. That's TRILLION, not billion. Not million.
The United States 2020 population is estimated at 331,002,651 people at mid year according to UN data. Divided into $27 trillion bucks, that means (if you are American) each one of you have to pay back $81,570 bucks. Somehow.
And, through interest rates that the Fed controls, it's going to keep on keeping on.
Anyway, you are right. Despite being charged with running the printing press for dollar bills, the modern Federal Reserve no longer simply runs new paper bills off of a machine. Some real dollar printing does still occur (with the help of the U.S. Department of the Treasury), but the vast majority of the American money supply is digitally debited and credited to major banks. The real money creation takes place after the banks loan out those new balances to the broader economy.