Federal Reserve’s role is to stabilize
The Federal Reserve System, often referred to as the Fed, is the central banking system of the United States. Established in 1913, its creation was a response to a series of financial panics and crises that plagued the nation in the late 19th and early 20th centuries.
Before the Federal Reserve, the U.S. banking system was decentralized and fragmented, with numerous private banks issuing their own currency. This lack of coordination and regulation led to frequent banking crises, where banks would fail, leading to widespread economic turmoil.