FEDERAL RESERVE SYSTEM Before Congress created the Federal Reserve System, periodic financial panics had plagued the nation. These panics had contributed to many bank failures, business bankruptcies, and general economic downturns. A severe crisis in 1907 prompted Congress to establish the National Monetary Commission, which put forth proposals to create an institution that would counter financial disruptions of these kinds. After much debate, Congress passed the Reserve Act, which was signed into law by President Woodrow …
showed first 75 words of 2023 total

showed last 75 words of 2023 total
…best interest of the nation and international economy in all their decisions regarding the increases in interest rates, etc. Since the onset of the Federal Reserve we have not gone into a depression, and over a course of time there will be times when our economy will peak and boom and the Fed will feel that it is time to slow the economy by raising the rates, as was the course not too long ago.