What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community.

Federal Reserve Act of 1913

The Federal Reserve Act of 1913 established the Federal Reserve System (aka the Federal Reserve, or simply the Fed) to regulate the banking and monetary system in the United States.

Expanded Definition

President Wilson signed the act created the United States' central bank. The Fed's responsibilities can be split into four general categories.

  • Influencing money and credit conditions in pursuit of full employment and stable prices.
  • Ensuring the safety and soundness of the nation's banking and financial system.
  • Maintaining the stability of the financial system and containing systemic risk in financial markets.
  • Playing a major role in operating the nation's payments systems

Related Fool Articles

Related Community Blogs

Related Terms