It is in my opinion that very few people know truly what the Federal Reserve is. Most people think that it’s a government entity. Well, they’re wrong.
The Federal Reserve had been in the making for a very long time. A lot of people had been trying to create a central bank, because that’s basically what it is. For further explanation, click here.
As I was saying, the Fed was in the making for a very long time. Maybe not physically, but mentally it was practically a solid. It was the Panic of 1907 (in which JP Morgan managed to bail out a Wall Street bank single-handedly) that helped the people in favor of a central bank gain steam.
In 1908, Senator Nelson Aldrich managed to get an act passed that increasede the amount of money banks could issue in an emergency in 1908. He went on to establish a lobbying committy that was known as the National Monetary Commission.
Finally, in 1910, banking rivals, including Morgans, Rockefellers, and Senatro Aldrich all got together on Jekyll Island and came up with the Federal Reserve, as well as all of the things that it would do.
In essence, the Federal Reserve is a bank for banks. It can allow banks to lend more without worrying as much about overextending themselves. This means that banks can now loan out more than they actually keep in their coffers, because the Fed will give them money if there’s a bank run.
The Blogger 
Fed Up by Danielle Booth is a super interesting read about the Fed and our current central banking system, if you’re interested!
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Thanks for telling me! I’ll try.
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