The Federal Reserve Act Of The United States Essay

821 Words Jun 21st, 2015 4 Pages
The Federal Reserve System is one of the most important aspects of the financial system of the United States. The Federal Reserve System is sometimes referred to as the Federal Reserve, but it is most often referred to as the Fed. It is the central bank of the United States and was created more than one hundred years ago on December 23, 1913 by President Woodrow Wilson. President Wilson signed the Federal Reserve Act making it a law in order to establish the Fed. Moreover, Congress created it with the goal of providing a safer, more stable, and more flexible monetary and financial system for the United States. The one thing about the Federal Reserve Act that President Wilson signed into law is that it is not going to expire. In the beginning, the Act only chartered the Federal Reserve banks for twenty years. In 1927, the McFadden Act re-chartered the Federal Reserve banks for eternity. Congress did this so that the Fed could not expire or be repealed. The Federal Reserve has responsibilities that fall into four main categories. The first involves directing the nation’s monetary policy. The Fed does this by manipulating money and credit conditions in the economy in order to accomplish stable prices and full employment. The second responsibility requires the Fed to manage and regulate banks as well as other financial institutions in order to guarantee the safety of the nation’s financial system and protect the credit rights of consumers. The third is that the Fed keeps the…

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