Federal Reserve Act

Federal Reserve Act
Long title	An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes
Enacted by	the 63rd United States Congress
Citations
Public law	[63-43 Pub. L. 63–43]
Statutes at Large	ch. 6, 38 Stat. 251
Legislative history
	Introduced in the House as H.R. 7837 by Carter Glass (D-VA) on August 29, 1913; Committee consideration by House Banking, Senate Banking; Passed the House on September 18, 1913 (287–85, 5 Present); Passed the Senate on December 18, 1913 (54–34); Reported by the joint conference committee on December 22, 1913; agreed to by the House on December 22, 1913 (298–60) and by the Senate on December 23, 1913 (43–25); Signed into law by President Woodrow Wilson on December 23, 1913;
Major amendments
	1933 Banking Act; Banking Act of 1935; Dodd–Frank Wall Street Reform and Consumer Protection Act; Economic Growth, Regulatory Relief, and Consumer Protection Act

The Federal Reserve Act was passed by the 63rd United States Congress and signed into law by President Woodrow Wilson on December 23, 1913. The law created the Federal Reserve System, the central banking system of the United States.

Following the 1912 elections, in which Democrats gained control of Congress and the presidency, President Wilson, Congressman Carter Glass, and Senator Robert Latham Owen introduced legislation to create a central bank. The proposal was shaped by debate between those who favored private control of a central bank, such as proponents of the earlier Aldrich Plan, and those who favored government control, including progressives like William Jennings Bryan. Wilson prioritized the bill as part of his New Freedom domestic agenda, and it passed Congress largely as introduced.

The Federal Reserve Act created the Federal Reserve System, consisting of twelve regional Federal Reserve Banks jointly responsible for managing the money supply, making loans and providing oversight to banks, and serving as a lender of last resort. It also established the Federal Reserve Board of Governors, members of which are appointed by the president. The 1933 Banking Act amended the Federal Reserve Act to create the Federal Open Market Committee, which oversees the Federal Reserve's open market operations. A later amendment required the Federal Reserve to aim for maximum employment, stable prices, and moderate long-term interest rates.