Federal Reserve Act of 1913

The Federal Reserve Act of 1913 established the Federal Reserve System, the central banking network of the United States. Its main goal was to provide the country with a safer, more flexible, and stable monetary and financial system. It created regional Federal Reserve Banks to oversee the banking industry, regulate money supply, and serve as a lender of last resort during financial crises. The act aimed to prevent bank panics, control inflation, and support economic stability, laying the foundation for U.S. monetary policy and financial supervision.