The
Federal Reserve Systemalso known as the
Federal Reserve or simply as
the Fedis the
central banking system of the United States. It was created on December 23, 1913, with the enactment of the
Federal Reserve Act, largely in response to a series of
financial panics, particularly a severe
panic in 1907. Over time, the roles and responsibilities of the Federal Reserve System have expanded, and its structure has evolved. Events such as the
Great Depression in the 1930s were major factors leading to changes in the system.