Federal Reserve ActThe Federal Reserve Act was passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States. Following the 1912 elections, in which Democrats gained control of Congress and the presidency, President Wilson, Congressman Carter Glass, and Senator Robert Latham Owen introduced legislation to create a central bank.
Monetary policy of the United StatesThe monetary policy of the United States is the set of policies that the Federal Reserve follows to achieve its twin objectives (or dual mandate) of high employment and stable inflation. The US central bank, the Federal Reserve System, colloquially known as "the Fed", was created in 1913 by the Federal Reserve Act as the monetary authority of the United States.
Monetary policyMonetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rate of inflation). Further purposes of a monetary policy may be to contribute to economic stability or to maintain predictable exchange rates with other currencies.Central bankGovernment body that manages currency and monetary policy
Structure of the Federal Reserve SystemThe structure of the Federal Reserve System is unique among central banks in the world, with both public and private aspects. It is described as "independent within the government" rather than "independent of government". The Federal Reserve does not require public funding; instead, it remits its profits to the U.S. Federal government.
United StatesThe United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic consisting of 50 states and a federal capital district, Washington, D.C. The 48 contiguous states border Canada to the north and Mexico to the south, with the semi-exclave of Alaska in the northwest and the archipelago of Hawaii in the Pacific Ocean.Depository institutionA depository institution is a non-banking financial institution (NBFI), also known as a nondepository financial institution (NDFI). It is a financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumers. Under federal law, however, a "depository institution" is limited to banks and savings associations - credit unions are not included.
United States CongressBicameral legislature of the United StatesThe United States Congress is the legislative branch of the federal government of the United States. It is a bicameral legislature, including a lower body, the U.S. House of Representatives, and an upper body, the U.S. Senate. They both meet in the United States Capitol in Washington, D.C.Members of Congress are chosen through direct election, though vacancies in the Senate may be filled by a governor's appointment.
Great RecessionThe Great Recession was a period of contraction in economies around the world (particularly in the western world and associated countries) that occurred from late 2007 to mid-2009, overlapping with the closely related 2008 financial crisis. The scale and timing of the recession varied from country to country (see map).
Great DepressionThe Great Depression was a severe global economic downturn from 1929 to 1939. The period was marked by high rates of unemployment and poverty, drastic reductions in industrial production and international trade, and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States, the largest economy in the world, with the devastating Wall Street crash of 1929 often considered the beginning of the Depression.
Bank regulation and supervisionBank regulation and supervision refers to a form of financial regulation which subjects banks to certain requirements, restrictions and guidelines, enforced by a financial supervisory authority or supervisor, with semantic variations across jurisdictions. By and large, bank regulation and supervision aims at ensuring the stability of the banking sector and at fostering transparency between banks and the individuals and other counterparts with whom they conduct business.
Financial crisisSituation in which financial assets suddenly lose a large part of their nominal valueA financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. A broader reduction of economic activity affecting the whole economy is known as an economic crisis. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics.*As an Amazon Associate I earn from qualifying purchases.