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History of the Federal Reserve
Transcript of History of the Federal Reserve
By: Brandon, Holly,Jacob, and Z'Yonda
History of the Federal Reserve
The fed is the federal reserve system; central banking system of the U.S.
Banking Act 1933
The Banking Act 1933 is also known as the Glass-Steagall Act. It was passed by Congress in 1933 and prohibits commercial banks from engaging in the investment business. It was enacted as an emergency response to failure of nearly 5,000 banks during the Great Depression.
Sky high prices of home in the U.S. started to fall rapidly, this caused casualties including the entire investment banking industry, the biggest insurance company, the two enterprises chartered by the government to facilitate mortgage lending, the largest mortgage lender, the largest savings and loan and two of the largest commercial banks. this caused the Federal auto industry to plea for a Federal bailout.
Created by congress to provide the nation with a safer, more flexible, and more stable monetary and financial system.
1st National Bank 1791
The bank was originally housed in 1791 to 1795. This was intended to recall all democracy of ancient Greece. The banks creation of our national symbol for more than 14 years. This was giving a 20 year charter and the equality capital was given 10 million dollars. This has 25 directors who were selected by the federal government. The headquarters are now in Philadelphia.
Federal Reserve Act 1913
A legislation that is created to the Federal Reserve System. This was intended to establish a new economic stability. This is for the Central Bank introduction of a change of monetary policy. This is the most influential law of the U.S. financial system.
Reagan- this was the first president the combat the worst recession since the Great Depression. This had double digit economics and a double digit inflation. Reagan had to cut income taxes 42% form the income tax rate. Reagan made a plan to reduce government spending regulations while reducing money supply’s.
Bush- had two recessions. The second worst since the Great Depression and the most damaging hurricane in U.S. history. Also the major 911 attack. Bush presented a 6 Trillion dollar plan to get the U.S. out of debt. In addition Bush pushed an Administration Medicare Part D program that lead America into another $550 Billion debt.
President Harry Truman and Secretary of the Treasury John Snyder were both strong supporters of the low interest rate peg. After the fierce debate between the Fed and the treasury for control over interest rates and U.S. monetary policy, their dispute was settled resulting in an agreement known as the Treasury-Fed Accord. This eliminated the obligation of the Fed to monetize the debt of the Treasury at a fixed rate and became essential to the independence of central banking and how monetary policy is pursued by the Federal Reserve.
The federal government has already raised taxes once before the election has started. Trump is posing a 1 Trillion dollar economic stimulus plan to rebuild the infrastructure. The cause of this is a higher rates to boost up our economy and tougher immigration laws, but the highly educated foreigners could command big salaries at big tech companies.
Today, this influential central bank-known as the, Federal Reserve is responsible for guiding the course of the U.S. economy by raising and lowering interest rates borrowers have to pay to lenders.
The first national bank because it kinda set the tone for the rest of the Federal Reserve.
A.K.A the cooking channel