Federal Reserve Act
About Federal Reserve Act
The Federal Reserve Act of 1913 created the central bank of the United States after a century without one. The act was passed in response to a series of financial panics, particularly the Panic of 1907. The Fed was designed to provide a flexible currency, rediscount commercial paper, and supervise banks. It had a unique structure with 12 regional banks and a Board of Governors in Washington. The act balanced public and private control, reflecting the ongoing American tension between Wall Street and Main Street. The Federal Reserve became the most powerful economic institution in the world. Its decisions on interest rates and money supply affect every economy globally.
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