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Fed.

project
By: Jasmine , Rodolfo, and Marcella

1775-1791 U.S. Currency


People had to come up with money to help the American Revolution. Solution- They came up with paper money These bills were called continentals. These bills started problems People found these bills to be worthless.

1791-1811: First attempt at central banking


The first big bank was opened in the usa. It was opened in Philadelphia. Many people did not like the idea of having a big bank in the usa. The bank was closed down in 1811.

1816-1836:A Second Try Fails


In 1816 there was a another try to open up the second bank in the usa. The congress said they would go with the idea. When Andrew Jackson was elected he said he would kill the idea. His idea touched many people and the bank was shut down in 1836.

1836-1865: The Free Banking Era


State-chartered and the ones that were not this one started happening during this time.

1863:National Banking Act


The National Bank Act of 1863 was passed This was passed because some banks had notes that had to be backed up by the us government. State banks continued to pop up places, because people wanted to make deposits.

1873-1907: Fin

1907:A very bad year

In 1907, there was a problem with the banking system so the Americans called a reform of banking.

1908-1912: The Stage is Set for Decentralized Central Bank

In 1908, The AldrichVreeland Act was passed. This actually calmed everybodys crises. It helped solve peoples financial problem. i

1912: Woodrow Wilson as Financial Reformer


Woodrow Wilson becomes the chairman of the House of Committee on Banking and Finance. Glass and Will proposed a central bank. Later they presented it to Wilson.

1913: The Federal Reserve System is Born

It was the Federal Reserve Act that was passed into law.

1914: Open for Business


Right before they built the Central Bank, the Reserve Bank Operating Committee said they were going to build a working institution.

1914-1919: Fed Policy During the War


During WW1, banks were normal because of the AldrichVreeland Act of 1908. USA later started to trade goods with Europe helping money problems with the war that lasted until 1917.

The year is 1933...


Due to the Great Depression there were many after effects. For example the Banking Act was passed ,also known as, the Glass Steagall Act. This act was made so that commercial and investments were to be separated. Therefore another act was created alled the FDIC Federal Deposit Insurance Company. This would help

markets open up.

In 1935 , the banking Act decided to expand and bring up a new act. This act was Federal Open Market Committee.

In 1956 there was an act called the Fed, but known as the Bank Holding Company. This lead to a regulation towards companies whom owned more than one company.

In 1987 the H &H act , Humphrey Hawkins, would need a fed chairman to go to congress and report twice throughout the year and tell the new goals and policy theyd come up with.

1935 & Changes

In the 50s...
In 1942 the interest rate in the US was low. Due to the fact that the US had just begun World War 2. The advantage to this was towards the federal govt wouldnt be in so much debt.

Inflation & Deflation 1960-1980


In the beginning of 1970 inflation within the US economy flourished. Although by 1979, everything had to stop or at least slow down . The fed chairman , Paul Volcker, stepped up and controlled this as much as he could. By the 1980s Paul Volcker had accomplished his goal and was able to control the chaos. The amazing outcome was the inflation controlled and not out of control that would terribly ruin the US economy.

1980s & Modern Time

The Fed backed up and created another act called the , Monetary Control Act, in 1980. This meant that any kind of financial service would be priced high to compete against other services.

1990
This period of time was the most difficult time in economic history. On October 10,1987 there was a terrible downfall for the stock markets. Furthermore, the Fed had to slowly decrease interest rates within the next decade.

9/11/01
The tragedy of September 11,2001 left all Chicagoans heart broken. Even though all this chaos was happening the Fed decreased interest rates and also gave out loans.

2003
By 2003 the Federal Reserved changed its interest rates and also gave out discount on window operations.

2006 - now

By the year 2000 there was a lot of homes that had low mortgages. This lead to to the prices of homes to drop . By 2007 -2008 we all reached a critical point. In 2008 there were two enormous problems which involved the bank. These investment banks were Lehman Brothers and Washington Mutual. During this time the banks were afraid to give out loans. Late fall of 2008 we were at the bottom , which meant most people lost their jobs .

2009- Now
In 2009 the Federal Reserve reached a point in which they bought $300 billion dollars worth of long-term securities. Also with the authorization of the purchase it was worth $1.25 trillion dollars of back up mortgage plans.

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