In response to a large financial crisis during 1907, the U.S created the Federal Reserve. The Federal Reserve was created on December 23 1913, The Federal Reserve is the third central banking system in United States. The 1st of the United States (1791–1811) and the 2nd Bank of the United States (1817–1836). Both banks issued currency, made loans, accepted deposits, and maintained multiple branches. Over time the Fed has evolved and grown throughout the years, events such as The Great Depression were big factors leading to its evolution.
The Federal Reserve takes the role of the central bank. It serves as the bank’s bank and the government’s bank. It was created by Congress to provide the nation with a safer, more flexible, more stable financial system. Some of its duties are: addressing bank panics, supervise and regulate banks, and protect credit rights. To add to that it issues all coin and paper currency.
The Federal
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Even when we are in debt they print more money. The more there is of something, the less value it has. This is where inflation comes from. It also encourages banks to make loans to people that they think have a better shot of not paying. It is a system that was designed by bankers for the benefit of bankers, and it is creating poverty for the American people.
The Federal Reserve uses the U.S. economy by setting national interest rates. It keeps rates high or low, the Fed has the power to make the economy great or completely destroy it. . They have the power to inflate massive bubbles and to pop them. Most American citizens, when usually criticizing the economy, start to blame presidents like Bush or Obama for how the economy is doing. But in reality they have no idea how much the economy is influenced by the Federal