The Federal Reserve System was established by Congress over a century ago to serve as the U.S. central bank. President Woodrow Wilson signed the Federal Reserve Act into law on December 23, 1913. ... The history of the Federal Reserve is bound up in the effort to build a more stable and secure financial system.
The Federal Reserve System is the central bank of the U.S. It conducts monetary policy to manage inflation, maximize employment, and stabilize interest rates. The Fed supervises the nation's largest banks and provides financial services to the U.S. government.
Congress developed the Federal Reserve Act to establish economic stability in the United States by introducing a central bank to oversee monetary policy. ... The 1913 Federal Reserve Act, signed into law by President Woodrow Wilson, gave the 12 Federal Reserve banks the ability to print money to ensure economic stability.
The Federal Reserve was created in 1913 to restore confidence in the banking system, regulate and supervise the banking system, and act as a lender of last resort to avert banking panics.
The Federal Reserve System is not "owned" by anyone. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank. The Board of Governors in Washington, D.C., is an agency of the federal government and reports to and is directly accountable to the Congress.
Even though the Federal Reserve is overseen by a board of governors appointed by the President of the United States, the bank's real control still resides with the Rothschild family.
So where does the Fed get its funding? Unlike other government agencies, it doesn't get funded by Congress as part of the normal budget process. Instead, it makes money mainly through interest on government securities that it bought on the open market.
The Federal Reserve's income is derived primarily from the interest on U.S. government securities that it has acquired through open market operations. ... After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury.
Central banking prior to the Federal Reserve
The First Bank of the United States (1791–1811) and the Second Bank of the United States (1817–1836) each had a 20-year charter. ... In 1863, as a means to help finance the Civil War, a system of national banks was instituted by the National Currency Act.
The Federal Reserve performs five general functions—conducting the nation's monetary policy, regulating banking institutions, monitoring and protecting the credit rights of consumers, maintaining the stability of the financial system, and providing financial services to the U.S. government.
Chair of the Federal Reserve
| Chair of the Board of Governors of the Federal Reserve System | |
|---|---|
| Flag of the Federal Reserve System | |
| Incumbent Jerome Powell since February 5, 2018 | |
| United States Federal Reserve System | |
| Style | Mr. Chairman |
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