Federal Reserve Act

The Federal Reserve Act, passed in 1913, established the Federal Reserve System, the central bank of the United States. Its main purpose is to regulate the nation’s monetary policy, supervise and regulate banks, maintain financial stability, and provide banking services to the government. By controlling interest rates and the money supply, the Federal Reserve aims to foster a healthy economy, manage inflation, and reduce unemployment. This act was a response to financial panics and aimed to create a more flexible and secure banking system.