Anyone who monitors financial markets or precious metals has heard of the Federal Reserve.
While the Federal Reserve has received considerable attention in recent years — due to financial crises and a feeble economy — few know the details of its history.
Until now.
Our latest Knowledge Center article, A Brief History of the Federal Reserve, provides a comprehensive background to the U.S. Central Bank.
For example, did you know the Federal Reserve is the third central bank to operate in the United States?
Established in 1913, the Fed is the longest-running central bank in the nation’s history. Charters for the first two were permitted to lapse, the last one expiring in 1836 during Andrew Jackson’s presidency.
Following the financial panic of 1907, many business and political leaders in the U.S. began to advocate for a centralized financial system. Yet it would be several years before the Federal Reserve was finally established in 1913.
The history of how the Fed came to be is not only intriguing. It’s chilling.
Shrouded in secrecy, the Fed is a bit of an enigma to most Americans. And as we approach its one-hundredth anniversary (this December), many are questioning the effectiveness of such a centralized system.
The debate surrounding the Fed is fascinating to those of us in the gold bullion business.
Is it a necessary evil to prevent disastrous financial shocks? Or is it an overly-powerful entity, responsible for devaluing the dollar by more than 90% in the last 100 years?
To fully grasp the debate, it’s important to understand the Fed’s history. Its story is certainly captivating, especially if you want to understand an institution whose chairman is — in many ways — more powerful than the President.
Check out our latest Knowledge Center article, A Brief History of the Federal Reserve, to learn more.
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