1913 Federal Reserve Act

The Federal Reserve Act of 1913 (also known as the Glass–Owen Act) was a United States federal law that established the Federal Reserve System, the central banking system of the United States. The act was signed into law by President Woodrow Wilson on December 23, 1913.

The Federal Reserve Act was designed to create a more stable and efficient financial system in the United States. The act created a central bank, the Federal Reserve System, which was given the power to regulate the money supply and interest rates. The act also created a number of other financial institutions, including the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC).

The Federal Reserve Act has been amended several times since its passage in 1913. The most significant amendments were made in 1933 and 1935, during the Great Depression. These amendments gave the Federal Reserve more power to regulate the financial system and to prevent another financial crisis.

The Federal Reserve Act has played a major role in the development of the United States financial system. The act has helped to create a more stable and efficient financial system, and it has helped to prevent financial crises. The act is still in effect today, and it continues to play an important role in the US financial system.

The Federal Reserve Act is a complex piece of legislation. It is divided into 12 sections, each of which deals with a different aspect of the Federal Reserve System. The act also includes a number of amendments, which have been made over the years to change or clarify the original law.

The first section of the Federal Reserve Act establishes the Federal Reserve System. The act creates a seven-member Board of Governors, which is responsible for overseeing the Federal Reserve System. The Board of Governors is appointed by the President of the United States, and it is subject to confirmation by the Senate.

The second section of the Federal Reserve Act establishes the Federal Reserve Banks. The act creates 12 Federal Reserve Banks, which are located in major cities across the United States. The Federal Reserve Banks are responsible for carrying out the policies of the Federal Reserve System.

The third section of the Federal Reserve Act establishes the Federal Open Market Committee (FOMC). The FOMC is responsible for setting monetary policy in the United States. The FOMC is made up of the seven members of the Board of Governors, along with five of the presidents of the Federal Reserve Banks.

The fourth section of the Federal Reserve Act establishes the Federal Deposit Insurance Corporation (FDIC). The FDIC is a federal agency that insures deposits in banks and other financial institutions. The FDIC was created in response to the Great Depression, and it has helped to prevent a number of bank failures since its inception.

The fifth section of the Federal Reserve Act establishes the Securities and Exchange Commission (SEC). The SEC is a federal agency that regulates the securities markets. The SEC was created in response to the stock market crash of 1929, and it has helped to protect investors from fraud and abuse.

The sixth section of the Federal Reserve Act establishes the National Credit Union Administration (NCUA). The NCUA is a federal agency that regulates credit unions. Credit unions are financial institutions that are owned by their members. The NCUA was created in 1970, and it has helped to promote the growth of credit unions in the United States.

The seventh section of the Federal Reserve Act provides for the repeal of the National Banking Act of 1864. The National Banking Act of 1864 was the first federal law to establish a national banking system in the United States. The act was repealed by the Federal Reserve Act of 1913, which created the Federal Reserve System.

The Federal Reserve Act is a complex piece of legislation that has played a major role in the development of the United States financial system. The act has helped to create a more stable and efficient financial system, and it has helped to prevent financial crises. The act is still in effect today, and it continues to play an important role in the US financial system.