How Does the Federal reserve Create the Money Supply The multiplier process of money creation Previously, we have said that the central bank can control the money supply. Yet what central bank can directly control is the high powered money. Even MI also include the checkable deposit How central bank can control or influence this part of money?How Does the Federal Reserve Create the Money Supply • The Multiplier Process of Money Creation Previously, we have said that the central bank can control the money supply. Yet what central bank can directly control is the high powered money. Even M1 also include the checkable deposit. How central bank can control or influence this part of money?