The Federal Reserve Act

The Federal Reserve Act, enacted in 1913, established the Federal Reserve System as the central banking authority of the United States. Its primary purposes are to provide the country with a safer and more flexible monetary and financial system. The Act created a system of regional Federal Reserve Banks to oversee and regulate banks, manage the nation's money supply, and implement monetary policy, including interest rates. This structure aims to stabilize the economy, promote maximum employment, and ensure the safety and soundness of the banking system, helping to prevent financial crises and support economic growth.