What Is The History Of The Federal Reserve?

The Federal Reserve is the Central Banking System of the country of the United States of America.

The first institution that took the responsibilities of the Central Bank in the USA was the First Bank of the United States and was given the charter by Alexander Hamilton in the year 1791. But the sacking of the charter of the bank and subsequent sacking of the charters of the banks that took over left the economic system of the US in lurch. And then a strong demand for the creation of centralised banking system was arisen.

Other banking systems were also established in subsequent years to serve as a central bank but there was a need of a strong banking system. The Federal Reserve act was passed in the year 1913 and President Woodrow Wilson named Paul Warburg and other prominent expert to give direction to the system. The system started functioning in the year 1915.