December 23

Enacted to address financial panics and stabilize the economy, the Federal Reserve Act creates the Federal Reserve System with twelve regional banks. Authored by Senator Carter Glass and President Wilson, the law aims to provide an elastic currency and oversee monetary policy. The Board of Governors in Washington, D.C., gains authority to regulate interest rates and supervise member banks. The new institution begins operations in November 1914, marking a shift to federal control over the money supply. The Federal Reserve evolves into the cornerstone of U.S. economic policy, guiding the nation through future crises and growth.