The Federal Reserve is the entity that can creates dollars out of thin air, bevause they control the interest rate of the dollar.
They control the base currency by physically printing dollars and lending money directly to banks. Then, more significantly, they influence the money supply by influencing how much commercial banks are lending, through interest rate operations, and sometimes through market operations that provide liquidity for certain types of securities (especially government bonds).
Taken together, it’s the power to create or destroy money in response to macroeconomic trends.
They control the base currency by physically printing dollars and lending money directly to banks. Then, more significantly, they influence the money supply by influencing how much commercial banks are lending, through interest rate operations, and sometimes through market operations that provide liquidity for certain types of securities (especially government bonds).
Taken together, it’s the power to create or destroy money in response to macroeconomic trends.