What was the Federal Reserve Act?
The Federal Reserve Act was a law passed in 1914. It created the Federal Reserve system that continues to exist and be very influential to this day.
Economically speaking, it is very important for all countries to have what are called central banks. Central banks are banks that control the money supply for a country as a whole. This is very important because the supply of money has a great deal to do with the economic health of a country. In 1913, the US had been without a central bank for nearly 80 years, since Andrew Jackson had destroyed the Second Bank of the US.
By the early 1910s, there was a great deal of sentiment for the creation of a central bank. It was felt that the US economy could not be stable and modern without one. For this reason, this act was passed and the Federal Reserve was created.
Federal Reserve Act of 1913 was an act that created a central Federal Reserve Board which was appointed by the President. It established a national system of 12 district banks, coordinated by a central board. It made currency and credit more elastic.
The Federal Reserve act was signed in 1913 which created the Federal Reserve System, the central banking system of the United States of America, which was signed into law by President Woodrow Wilson.