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Initially it was created to address the nation's banking panics. Then the Federal Reserve became responsible for developing a healthy economy. In order to achieve the private interests of banks and the centralized responsibilities of government, a central bank under public control was created, the Federal Reserve System.
The Federal Reserve System (the "Fed") was created on December 23, 1913. The "Fed" is consisted of the Board of Governors, the Reserve Banks and the Federal Open Market Committee. The Board of Governors is the "economic authorities", or the federal government agency that regulates banks...
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