The history of the US Federal Reserve - from beginning to end.
The U.S. Federal Reserve acts as the primary, independent regulatory agency that serves as America's central bank. The Federal Reserve's responsibilities include primarily organizing and implementing monetary policy, providing financial services to the federal government and the country's depository institutions, as well as implementing banking supervision.
For the first time, the idea of creating the Federal Reserve was initiated in 1791 by Alexander Hamilton. This led to the creation and operation of the first Bank of America, which lasted until 1811. Later in 1816, another attempt was made to create the Bank of America. This was due to the need to contain the inflation that was created by the hostilities of 1812.
The path to forming a central bank that would have the power to decide and regulate monetary matters was by no means a smooth one. Initially the idea was not taken seriously and had a large number of opponents. One of the main opponents to the establishment of a central bank was President Andrew Jackson. The current president was inclined to the opinion that a private central bank would not be able to ensure the stability of the currency. President Jackson's opposition lasted until 1833, when the Bank of the United States was created. Andrew Jackson was forced to withdraw all deposits of the federal government, which led to the weakening of the Bank of the United States. In 1836, when the bank's license expired, it was closed.
In the winter of December 1913, the U.S. Congress signed the Federal Reserve Act, which created the first Federal Reserve System. The main proponents of this act were Virginia Senator Carter Glass, as well as President Woodrow Wilson. A key purpose of the new reserve system was to ensure the soundness of the banking system, which had been weakened by crises. The instability of 1893 and 1895, which were accompanied by panic, as well as the crisis of 1907, put the country's economy at risk. It was this that influenced the need for a central reserve system to help stabilize the country's economic situation by controlling the flow of money.
The unique structure of the Fed was constantly criticized and had opponents. In 1930, the duplicity of the Fed led to litigation, after which in 1941 the process was concluded and the Fed was recognized as an independent unit of government.