The United States of America has one of the most stable economies in the world. Reason being the strong central bank that Congress established in 1914 known as the Federal Reserve System (FRS). The Federal Reserve System is composed of a central government, the Board of Governors, in Washington. The FRS has an interesting origin and does a variety of tasks in order to make the economy function properly. The Federal Reserve System was chartered in 1913 to provide the US with a safer, and more stable monetary and financial system. Today, the Federal Reserve's jobs are managing the nation's monetary policy by have an influence on credit and money conditions in the economy in hope of achieving full employment and stable price levels. The FRS also tries promoting the stability of the financial system, providing banking services to depository institutions and the federal government, and making sure that consumers have enough information and just treatment in their interactions with banks. The Federal Reserve System can be broken down into five sections to better understand it: the history and origin, structure, its use monetary policy, its job as a bank supervisor, and the financial services it provides. .
The present central bank was established in 1914, but other attempts were made earlier in the history of the US that were less successful. The first attempt was in 1791, when Treasury Secretary Alexander Hamilton urged Congress to establish a central bank. This bank was known as the First Bank of the United States, but many Americans feared the idea of a large and powerful central bank and when it was time to renew its charter, Congress refused and the bank died. There was a second attempt in 1816, but the same situation prevailed. There was a crisis in 1907 that led Congress to study the banking system, and in 1913 the Federal Reserve Act was signed in as a law by President Woodrow Wilson.
