[bogomipz]

No, this is not correct. The term "Fed Rate" is not correct or meaningful either. There are two different things - the Fed Funds Rate and the Discount Rate(also known as the Discount Window.) The Fed Funds Rate is "the rate" being discussed when the Fed raises interest rates[1][2]. The Fed Funds Rate is the interest rates banks charge each other to borrow money overnight to meet their Federal Reserve requirements. When it becomes more expensive for banks to borrow money from each other to meet their overnight Federal Reserve requirements it makes credit more expensive for both the banks and the consumers of a bank's loan products.

Banks can also borrow directly from the Federal Reserve via a facility called the discount window or Fed Discount rate[1]. Banks for a long time have avoided borrowing directly from the Fed as it has had something of stigma attached to it.[3] That has changed recently however(2007-2008.) The Discount Rate is always more than the Fed Funds Rate.

>"Every time the FED lends someone money, it basically prints it."

This is not correct either. The Fed maintains a balance sheet with assets and liabilities similar to a corporation [4]. One of those assets is money they have lent to other financial institutions. They do this by crediting or debiting the bank's account at the Fed. You seem to be confusing the Discount Rate with Quantitative Easing.

[1] https://www.investopedia.com/terms/f/federalfundsrate.asp

[2] https://www.investopedia.com/terms/f/federal_discount_rate.a...

[3] https://www.federalreserve.gov/econres/notes/feds-notes/stig...

[4] https://www.investopedia.com/terms/f/fed-balance-sheet.asp