i want to keep him with us in our sitting area all the time if he keeps flying around everyone will be scared.
That's a problem to solve by talking to the humans and explaining why it's so important for him to be able to fly, desensitising yourselves to a large bird flying around, and having safe places for him to hang out and play. You will probably need a very large cage or indoor aviary so that he and your baby can be kept away from each other. When it's safe to have guests over, make sure that your bird is either not in the room or kept in a cage/indoor aviary again for the safety of both bird and people.
You decided to bring a large macaw into your home. The onus is on you to adapt your environment to the bird, not rob him of flight because it makes things easier for you. It can be difficult to adapt our lives and living spaces to a flying bird but there is lots of support and guidance on these forums to help you. Flight is so very important to a parrot's physical and mental health - as
@jmfleish says, everything about a bird's physiology is adapted for flight. Their cardiovascular and respiratory systems in particular really suffer if a bird is not allow to fly. Flying allows captive birds a tiny bit of independence and choice: it's not nearly as much as they'd have in the wild, but they do appreciate it. Clipping a bird can lead to behavioural problems, especially anxiety and plucking behaviours.
Obviously Leia is much much smaller than a macaw, but I
love that she can choose where she wants to be in the home. If she's hungry, she will fly to her food bowls to eat. If she's thirsty, she'll fly to her water bowl to drink. She can choose which room she wants to be in. She can choose where in the room she wants to hang out and she has different places: up high on top of bookcases, on a stand, on top of her cage and so on. She follows me around the flat. Through flight, she is able to choose to be with me over and over again. It is hard at times but her joy in flight has given me so much joy in turn.