Federal Reserve

The Federal Reserve System is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of the Federal Reserve System.

Some of the key events about Federal Reserve

1913
Established as the central banking system of the United States to provide a safer, more flexible financial system
1913
Established a centralized banking system, reducing state and local control over monetary policy
1929
Failed to prevent the stock market crash that led to the Great Depression
1933
Implemented emergency banking measures to restore public confidence during the Great Depression
1933
Contributed to the deepening of the Great Depression by contracting the money supply
1937
Tightened monetary policy prematurely, contributing to a recession within the Great Depression
1951
Reached an accord with the Treasury Department to regain independence in monetary policy
1970s
Failed to effectively control inflation, leading to a period of stagflation
1977
Given a dual mandate by Congress to promote maximum employment and stable prices
1979
Adopted monetary targeting to combat high inflation
1979
Implemented aggressive interest rate hikes, contributing to a recession in the early 1980s
1987
Provided liquidity to markets during the stock market crash, preventing a potential financial crisis
1999
Did not prevent the formation of the dot-com bubble, which burst in 2000
2007
Failed to foresee and prevent the subprime mortgage crisis
2008
Implemented unprecedented measures to stabilize financial markets during the global financial crisis
2008
Bailed out large financial institutions, potentially encouraging moral hazard
2010
Launched the 'Comprehensive Capital Analysis and Review' to assess the capital planning processes of large banks
2010
Implemented quantitative easing, leading to concerns about long-term inflation and economic distortions
2012
Announced a 2% inflation target to help anchor long-term inflation expectations
2020
Took swift and extensive actions to support the economy during the COVID-19 pandemic

Disclaimer: This material is written based on information taken from open sources, including Wikipedia, news media, podcasts, and other public sources.