The Founding of the Federal Reserve Bank: An In-Depth Look

For those interested in the history and structure of the Federal Reserve (The Fed), the best place to start is the Fed itself. This article aims to provide a comprehensive overview of the Fed's founding and its role in American finance.

Secret Gathering of 1910: Foundations Laid

One of the most intriguing narratives surrounding the Federal Reserve's origins is the secret gathering that took place in 1910. A group of influential bankers and policymakers convened on Jekyll Island, a secluded island off the coast of Georgia, to discuss the creation of a central banking system for the United States. This meeting laid the groundwork for what would eventually become the Federal Reserve System.

Federal Reserve Act of 1913: Formal Establishment

The U.S. Congress passed the Federal Reserve Act in 1913, officially creating the Federal Reserve System. This act outlined the structure and functions of the Federal Reserve, creating a dual system consisting of a central governing body within the U.S. government and twelve regional banks.

The Structure of the Federal Reserve

At the highest level, the Federal Reserve Board of Governors is appointed by the President of the United States and confirmed by the Senate. The Board has the important responsibility of reporting directly to Congress through both banking committees. Lower-level entities, the twelve Federal Reserve Banks, are not-for-profit institutions that serve member banks primarily for voting purposes. These banks cannot pay dividends or profits; instead, all profits in excess of budgeted costs must be paid to the U.S. Treasury.

Resources and Information from the Fed

For detailed and accurate information about the Federal Reserve, it is best to consult the Federal Reserve's official website. The Fed has one of the largest and most well-designed websites in existence, offering a wealth of information on various aspects of the banking system. Visitors can find financial and compliance audits, minutes from recent meetings, economic research reports, and forecasts. The website also includes explanations of policies, procedures, and the legal requirements and oversight of the Federal Reserve.

Myth Busting: Understanding the Realities

While the internet is rife with rumors and conspiracy theories about the Federal Reserve, such as the domination of the Illuminati, Rothschilds, and even satanic practices, these claims are misleading and unsupported by reliable sources. The Federal Reserve's official website provides detailed explanations of how the system works, including the process of fractional reserve banking. Such information can help dispel these myths and foster a better understanding of the Federal Reserve's role in the American economy.

Conclusion

The creation of the Federal Reserve was a significant moment in American history, reflecting the nation's commitment to a robust and stable financial system. Understanding the origins and the current structure of the Federal Reserve can help in evaluating the role it plays in the broader economic landscape.