The Federal Reserve Act of 1913

The Federal Reserve System was established as the central bank of the United States in 1913 under the Federal Reserve Act. It claimed it could provide a safer, more flexible and more stable financial system.

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Also known at the time as the Currency Bill, it called for a system of eight to twelve regional Reserve Banks. Each Reserve Bank would be owned by the banks in their region. A Federal Reserve Board, appointed by the President, would govern each bank's actions. This proposed system would be privately owned, but publicly controlled.

 

President Woodrow Wilson signed the bill on December 23, 1913.