Thomas Woodrow WILSON
1913 - December 23 – The Federal Reserve System is created as the central banking system of the United States by Woodrow Wilson's signature of the Federal Reserve Act.
The Federal Reserve System, often referred to as the Federal Reserve or simply the Fed, was created in response to the financial panics and banking crises that had plagued the United States in the late 19th and early 20th centuries. The system was designed to provide a more stable and flexible monetary and financial system for the country.
The Federal Reserve Act established the Federal Reserve System as a decentralized central banking system. It created 12 regional Federal Reserve Banks, each responsible for overseeing banking activities within its designated district. The Board of Governors, based in Washington, D.C., was established to oversee the entire system.
One of the primary functions of the Federal Reserve System is to regulate the supply of money and credit in the economy. It does this through various mechanisms, such as setting interest rates, regulating banks, and conducting open market operations (buying and selling government securities).
The Federal Reserve System also serves as the lender of last resort, providing emergency loans to banks and other financial institutions during times of financial crisis to help maintain stability in the financial system.
December 23, 1913
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Thomas Woodrow WILSON.