Federal Reserve Act of 1913


Also found in: Wikipedia.

Federal Reserve Act of 1913

Federal legislation that established the Federal Reserve System.

Federal Reserve Act of 1913

Legislation in the United States that created the Federal Reserve System. Prior to the Act's adoption, the United States had been without a central bank since the charter of the Second Bank of the United States expired in 1836. This led to a number of panics, including several in the first decade of the 20th century, which led many to believe that a central bank ought to control American monetary policy.

The Act mandated the creation of between eight and 12 Federal Reserve banks 12 ultimately were founded to operate under the guidance of a Federal Reserve Board, whose seven members were appointed by the President. The Act gave the Federal Reserve System the authority to print money, a controversial measure at the time. It further required that all federally-chartered banks belong to the System and purchase a certain amount of stock in the Federal Reserve bank in charge of their particular regions. The Federal Reserve System was ordered to set the monetary policy of the United States, which it does by printing money, selling Treasury securities, and adjusting the discount rate and the fed funds rate. While the Federal Reserve Act has been amended more than 200 times since 1913, it remains the most significant law governing American finances.
References in periodicals archive ?
During the period preceding the Federal Reserve Act of 1913, the Treasury perceived itself to be "the official manager of fiat currencies" and exercised "guardianship of the gold standard" (p.
The Federal Reserve Act of 1913 created a sleepy little institution by today's standard.
As an example one of the earliest, the Federal Reserve Act of 1913 limited farm/agriculture mortgage products to a five-year maturation term, 50 percent maximum loan-to-value (LTV) ratio with guidelines on capital requirements.
The Federal Reserve Act of 1913, which gave the federal government the ability to create money, was controversial in its day -- but it was supported in the House by 99 percent of Democrats and 41 percent of Republicans.
On numerous occasions in 2008 and 2009, the Federal Reserve Board invoked emergency authority under the Federal Reserve Act of 1913 to authorize new broad-based programs and financial assistance to individual institutions to stabilize financial markets.
The Federal Reserve Act of 1913 was designed to balance the competing interests of the public and private sectors.
The Federal Reserve Act of 1913 requires each of the Reserve Banks to operate under the supervision of a board of directors.
Since the inception of the Federal Reserve Act of 1913, the country's financial system has been heading toward today's debt and credit crash by design.
senator and, as chairman of the House Committee on Banking and Currency, one of the major architects of the Federal Reserve Act of 1913.
whose pamphlet, "A plan for a modified central bank" (published during the Financial Panic of 1907), strongly influenced the drafting of t he Federal Reserve Act of 1913.
The Federal Reserve Act of 1913 gave to the Federal Reserve central control over currency issuance, but the Congress gave responsibility for designing U.
The Federal Reserve Act of 1913 and the Clayton Antitrust Act of 1914 establish the Federal Reserve Board and the Federal Trade Commission, respectively.
Full browser ?