Federal Reserve

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

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