The Federal Reserve System, also called the Federal Reserve, is the central banking system of the United States. It was created in 1913 with the addition of the Federal Reserve Act, as a response to several panics in the years before. Since then, things like the Great Depression have caused changes in the system, and the duties of the reserve now include influencing monetary and credit conditions in the economy, supervising and regulating bank institutions, maintaining stability in the financial system, and providing financial services to depository institutions.
According to the board of governors, made up of seven members serving 14-year terms, the Federal Reserve is not owned by anyone and is not a private, profit-making institution. But private banks make up much of the Federal Reserve. It works completely independent and has the authority to act without presidential or congressional consent.
Written by: Tyler Parks
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