What Is the 1913 Federal Reserve Act?
The 1913 Federal Reserve Act is legislation in the United States that created the Federal Reserve System.1 Congress passed the Federal Reserve Act to establish economic stability in the U.S. by introducing a central bank to oversee monetary policy.
The 1913 Federal Reserve Act created the Federal Reserve System, known simply as "The Fed."
It was implemented to establish economic stability in the U.S. by introducing a central bank to oversee monetary policy.1
The Federal Reserve Act is one of the most influential laws shaping the U.S. financial system
The Fed System
The 12 Federal Reserve banks, each in charge of a regional district, are in Boston, New York, Philadelphia, Cleveland, Richmond, St. Louis, Atlanta, Chicago, Minneapolis, Kansas City, Dallas, and San Francisco.6
The seven members of the Board of Governors are nominated by the president and approved by the U.S. Senate. Each governor serves a maximum of 14 years, and each governor's appointment is staggered by two years to limit the power of the president. In addition, the law dictates that appointments be representative of all broad sectors of the U.S. economy