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The Fed is not a private institution. It is overseen by the US government. The President appoints the Federal Reserve Chair, and Congress must approve the appointment. Congress can also alter statutes governing the Fed. It also works closely with the Treasury Department, which is an executive branch of the federal government. It's the Treasury Department that actually does the printing of money, and The Fed decides how much money the Treasury needs to print. It then regulates the money supply through policy instruments like setting interest rates or depositing credit into all the banks within the federal reserve system.

While the Fed is not a private institution, it is also not a government institution. It is a semi-independent agency from government in that it runs its own affairs and makes its own daily decisions which do not have to be approved by Congress or any elected official (except for emergency loans). It funds itself through investments, both domestic and foreign.

The US government cannot go bankrupt because it creates its own currency and any debt is owed to itself.