Federal Reserve Act

Definition

The Federal Reserve Act refers to a law passed in 1913 that established the Federal Reserve System, which is the central banking system of the United States. It created a decentralized and independent organization responsible for managing monetary policy and regulating banks.

Related terms

Monetary Policy: The actions taken by central banks, like the Federal Reserve System, to control and regulate money supply in an economy.

Central Bank: A financial institution responsible for managing a country's currency, controlling interest rates, and maintaining stability in the financial system.

Bank Regulation: Rules and regulations imposed by government agencies on banks to ensure their safety and soundness, protect consumers' interests, and maintain stability in the banking industry.