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Federal Reserve System

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AnalyticsTrade Team Last updated on 26 Apr 2023

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Federal Reserve System

The Federal Reserve System, commonly known as the Fed, is the central banking system of the United States. It was created in 1913 by the Federal Reserve Act and is responsible for setting monetary policy, regulating banks, and providing financial services to the public. The Fed is composed of twelve regional Federal Reserve Banks, each of which is responsible for a particular region of the country. The Federal Reserve Board of Governors, located in Washington, D.C., is the governing body of the Federal Reserve System.

History of the Federal Reserve System

The Federal Reserve System was created in 1913 in response to the financial panic of 1907. The Panic of 1907 was caused by a lack of liquidity in the banking system, which led to a series of bank runs and a severe economic downturn. In response, Congress passed the Federal Reserve Act, which established the Federal Reserve System and gave it the authority to issue currency and regulate the banking system. The Federal Reserve System was designed to provide a more stable and reliable banking system, and to provide a more flexible and responsive monetary policy.

Since its creation, the Federal Reserve System has been responsible for setting monetary policy, regulating banks, and providing financial services to the public. The Federal Reserve System has also been responsible for responding to economic crises, such as the Great Depression and the Great Recession. The Federal Reserve System has also been responsible for responding to financial crises, such as the 2008 financial crisis.

Table of Comparisons

Item Federal Reserve System
Year Established 1913
Number of Banks 12
Number of Governors 7
Number of Employees 20,000

Summary

The Federal Reserve System is the central banking system of the United States. It was created in 1913 in response to the Panic of 1907 and is responsible for setting monetary policy, regulating banks, and providing financial services to the public. The Federal Reserve System has been responsible for responding to economic crises, such as the Great Depression and the Great Recession, and financial crises, such as the 2008 financial crisis. For more information about the Federal Reserve System, visit the Federal Reserve website or the websites of the twelve regional Federal Reserve Banks.

See Also

  • Monetary Policy
  • Banking System
  • Federal Reserve Act
  • Federal Reserve Board of Governors
  • Federal Reserve Banks
  • Great Depression
  • Great Recession
  • 2008 Financial Crisis
  • Interest Rates
  • Inflation

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