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By: Jasmine , Rodolfo, and Marcella
1873-1907: Fin
In 1907, there was a problem with the banking system so the Americans called a reform of banking.
In 1908, The AldrichVreeland Act was passed. This actually calmed everybodys crises. It helped solve peoples financial problem. i
It was the Federal Reserve Act that was passed into law.
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.
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.
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.