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The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States.It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises.
During the 1912 election, the Democratic Party took control of the presidency and both chambers of Congress. The newly elected president, Woodrow Wilson, was committed to banking and currency reform, but it took a great deal of his political influence to get an acceptable plan passed as the Federal Reserve Act in 1913. [14]
Also created as part of the Federal Reserve System was a 12-member Federal Advisory Committee and a single new United States currency, the Federal Reserve Note. The Federal Reserve Act created a national currency and a monetary system that could respond effectively to the stresses in the banking system and create a stable financial system.
The Federal Reserve, frequently dubbed “the Fed” for short, is the central bank of the U.S. ... Congress created these regional banks to ensure that the Fed was a “decentralized” central ...
The Federal Reserve System, also known as the Federal Reserve or simply as the Fed, is the central banking system of the United States today. The Federal Reserve's power developed slowly in part due to an understanding at its creation that it was to function primarily as a reserve, a money-creator of last resort to prevent the downward spiral ...
Created by the Federal Reserve Act of 1913, districts within the Federal Reserve System work together to manage the country’s money supply and how commercial banks are funded.
In response, the Federal Reserve System was created by the Federal Reserve Act of 1913, establishing a new central bank intended to serve as a formal "lender of last resort" to banks in times of liquidity crises, panics when depositors try to withdraw their money faster than a bank could pay it out.
[30]: 139 They convinced Congress to enact the Federal Reserve Act in December 1913. [43]: 28–31 In 1913, Brandeis wrote a series of articles for Harper's Weekly that suggested ways of curbing the power of large banks and money trusts.