Monetary Control Act

The Monetary Control Act of 1980 was enacted to modernize and strengthen the U.S. banking system's ability to manage the economy. It required all banks, whether they had a federal or state charter, to follow the same rules and pay the same fees to the Federal Reserve. This unified the regulation of all banking institutions, making it easier for the Federal Reserve to control the money supply and interest rates. Essentially, it improved the Federal Reserve’s ability to implement monetary policy, helping maintain economic stability and control inflation.