Founding of the Federal Reserve System: A Political History

Abstract

The Federal Reserve System has been the focus of significant scrutiny, but stakeholders educated as to its history and functions are aware that it serves as a crucial resource for preserving national (and by extension global) economic stability. This paper consists of a historical overview of the Federal Reserve and the many controversies, which have led to adjustments that improved the system and kept it effective throughout changing times. With discussion of its constitutional foundations, the establishment of the central bank of the United States, pertinent legislation, and political controversies, the Federal Reserve will be explained in a comprehensive way that can lead to accurate appreciation for the nature of the System, as it exists today – with greater transparency and importance than ever before.