Federal Reserve System

The New York Fed's mission is to strengthen the U.S. economy and enhance the stability of the financial system for all sectors of society.

Andrew Jackson, a follower of the Jefferson line, opposed the second Bank of the United States, viewing it as too powerful, insulated from congressional oversight, and harmful to states' attempts to manage their local economies. He also distrusted banks in general as dishonest players in the economy.

The act provided for nationally chartered banks with circulating notes backed by U.S. government securities, effectively creating a uniform currency for the nation.

A banking panic triggered the worst depression the United States had ever seen, leading to the intervention of financial mogul J.P. Morgan.

The Panic of 1907 was a financial crisis that led to the development of the Federal Reserve System to prevent future economic turmoil.

In November 1910, Senator Aldrich convened a secret conference at the Jekyll Island Club with leading financiers to discuss monetary policy and the banking system. The conference laid the groundwork for the design of a 'National Reserve Bank'.

The Federal Reserve Act was passed in 1913, establishing the Federal Reserve as the central bank of the United States. It aimed to provide the nation with a safe, flexible, and stable monetary and financial system.

The Federal Reserve System, founded in 1913, serves as the central bank of the United States, ensuring a secure, adaptable, and steady financial environment for the nation.

The Pujo Committee, appointed by Congress to investigate banking and securities industry practices, issues a report that prompts Congress to establish the Federal Reserve System. The Fed is established to stabilize the nation's banking structure.

The Federal Reserve was established on December 23, 1913, with the signing of the Federal Reserve Act by President Woodrow Wilson. It was created to provide the country with a safer, more flexible, and more stable monetary and financial system.

On December 23, 1913, Congress passed the Federal Reserve Act, establishing the Federal Reserve System. President Woodrow Wilson signed the legislation on the same day, creating the central banking system in the United States.

Benjamin Strong, a key member of Morgan's company, became the president of the Federal Reserve Bank of New York in 1914. This appointment was significant as the New York Federal Reserve Bank was the most important regional branch.

On April 2, 1914, the Reserve Bank Organization Committee announced its decision to establish twelve Federal Reserve banks to cover various districts throughout the country. The New York Fed, with over $20,000,000 in capital stock, became the largest and most dominant bank in the system.

Charles S. Hamlin was appointed as the first chairman of the Federal Reserve Board in 1914 and was reappointed in 1916 and 1926, serving until February 1936.

On November 16, 1914, the 12 cities chosen as sites for regional Reserve Banks were open for business. This marked the operational beginning of the Federal Reserve System, coinciding with the outbreak of World War I in Europe.

The Federal Reserve Bank started providing payment services in 1915 to facilitate the transfer of funds between financial institutions.

In October 1929, the stock market crashed, leading the nation into the worst depression in its history. Nearly 10,000 banks failed from 1930 to 1933, prompting President Franklin Delano Roosevelt to declare a bank holiday and seek solutions for the economic crisis.

Edmund Platt served from August 21, 1934, to February 10, 1936.

The Banking Act of 1935 was approved on August 23, 1935, and became effective on February 1, 1936. It brought significant changes to the banking system and marked the end of the Secretary of the Treasury serving as Chairman of the Federal Reserve Board.

The Comptroller of the Currency served as a member of the Federal Reserve Board until the implementation of the Banking Act of 1935 on February 1, 1936.

In 1951, the Treasury-Fed Accord was reached, ending interest rate controls and allowing the Fed to use its monetary tools to control inflation.

The Automated Clearinghouse Services were established by the Federal Reserve in 1974 to enable electronic payments and transfers between bank accounts.

In 1977, the Federal Reserve was given the dual mandate to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.

In August 1979, Paul Volcker was sworn in as Fed chairman to take drastic action to break inflation’s stranglehold on the U.S. economy during the 1980s.

The Monetary Control Act of 1980 required the Fed to price its financial services competitively against private sector providers and to establish reserve requirements for all eligible financial institutions, marking the beginning of modern banking industry reforms.

The Fedwire Funds Services were introduced in 1981 by the Federal Reserve to facilitate real-time, high-value payments and transfers between banks.

The Fedwire Securities Services were launched in 1983 to provide a secure and efficient platform for the transfer and settlement of securities.

The Federal Reserve responded to the terrorist attacks on September 11, 2001 by issuing a statement and taking actions to stabilize the U.S. financial markets. It lowered interest rates and provided significant loans to financial institutions to prevent a liquidity crunch.

Ben S. Bernanke was reappointed on February 1, 2006, after resigning on June 21, 2005.

Ben S. Bernanke resigned from his position on June 30, 2006.

The Great Financial Crisis of 2007-09 led to a severe recession with a 4.5 percent decline in Gross Domestic Product (GDP) and a doubling of the unemployment rate from under 5 percent to 10 percent. The Federal Reserve took various actions to combat the crisis, including cutting the federal funds rate to zero and implementing large scale purchases of U.S. Treasury and mortgage-backed securities through quantitative easing.

The Fed's centennial year began on December 23, 2013, marking the 100th anniversary of the signing of the Federal Reserve Act.

Ben S. Bernanke resigned from his position on January 31, 2014.

Janet Yellen assumed the role of Chair of the Board of Governors of the Federal Reserve System, overseeing the U.S. monetary policy and financial system.

The Board of Governors of the Federal Reserve System is a key component of the Federal Reserve System, responsible for overseeing the nation's monetary policy, supervising and regulating banks, maintaining financial stability, and conducting economic research.

The Board of Governors of the Federal Reserve System was last updated on April 21, 2017.

The FedNow® Service, announced by the Federal Reserve in 2019, aims to provide a real-time payment and settlement infrastructure to support faster payments in the United States.

In mid-2020, the FOMC introduced a new policy framework and retained highly accommodative monetary policy into 2021 to encourage further recovery of the economy. This policy framework aimed to address the economic impact of the COVID-19 pandemic and ensure market stability.

The Federal Reserve took forceful measures in March 2020, including open market operations, actions to improve liquidity conditions, programs to facilitate the flow of credit in coordination with the Treasury Department, and measures to encourage banks to use their capital and liquidity buffers to support the economy.

The Federal Reserve conducted a review of its monetary policy strategy, tools, and communications in September 2021.

The Board of Governors of the Federal Reserve System made the last update on May 18, 2023, providing information related to FedNews & Events, Monetary Policy, Supervision & Regulation, Financial Stability, Payment Systems, Economic Research, Data, Consumers & Communities.