So not the government.
> When the Fed "sets interest rates" on bonds
It doesn't set the interest rates on treasury bonds. They set a target and engage in the market to get the price to that level. Still a private entity doing private things. Not the government
> Sometimes literally by physically printing it, but more often by crediting someone's account in their computers
Definitely not!
> More money is created this way when interest rates are lower because people take out more loans then.
This is the only way money is created. The previous paragraph is far from how anything works.