The Fed is one of the most misunderstood institutions. Basically, everything you have said is completely wrong, which makes difficult to write a reply, because where to start?

In short, the original design of the Fed was correct, where each branch was independent and could set their own interest rate, and they purchased commercial paper to stimulate the economy. This changed during WWII, where the government mandated that they had to purchase government bonds to support the war.

Congress is the main problem, where they spend money recklessly with no intention of paying anything back.

The Fed is in a position where if they don't raise interest rates, they will be blamed for the bad economy.

The Fed is a convenient scapegoat, used by people who assume that Youtube videos are correct.