THE FEDERAL RESERVE

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The Federal Reserve Bank serves as the United States of America’s central bank. From the beginning of the nation, the need for management of the country’s money supply, assistance in the fiscal operations of the federal government and stabilization of the nation’s credit was recognized.

Laws that created the Fed:

As an attempt to achieve these need and others, several attempts at creating centralized banking have been tried and all have failed save for the Federal Reserve System. Some of these failed attempts at creating structured central banking were the First and Second Banks of the United States, the Independent Treasury, the National Banking System, clearinghouse associations, and the National Reserve Association. These previous systems failed for many different reasons, lack of support, lack of financing, poor organization and economic events were at the root cause of their demise. It wasn’t until December 1913, with Woodrow Wilson’s signing of the Federal Reserve act, that the FRS became the official central bank of the United States of America.