THE FED TIMELINE

Created By: Hector Saldana & Bubba Scharon

The Late 18th Century (1775-1791)

During this Century The American Revolution had commenced and began affecting those in it. The continental congress in response to the sudden need of a type of currency began to issue continentals or fiat money notes. These Continentals unfortunately led straight to inflation as the War Continued.

The Early 19th Century (1791-1836)

The First Bank of the United States established in Philadelphia in 1791 because of Alexander Hamilton. After 20 years this Bank created fails to be reestablished after its 20 year charter expired in 1811. in 1816 the Second Bank of the United States created, after Andrew Jacksons presidential election in 1828 he vowed to destroy it.

The Late 19th Century (1836-1865)

Later in the 19th century it became something more chaotic with Banks starting up and dealing their own notes that were backed up by the gold or specie they held. But the National Banking Act of 1863 was established for a measure of currency stability for the growing nation. In 1893 though a Depression hit the United Sates and hit it

hard! Giving Awareness to the need for reform in the

Banks.

The Early 20th Century (1907-1933)

the 20th century begins with a panic in the United States Banks when Wall Street Failed and this resulted in a cry for a better banking system. In response previous years terrible hit on the economy to the the Aldrich-Vreeland Act of 1908 was established. Woodrow Wilson created a financial reform known as the Federal Reserve Act. Later

on the Open market operations began and then one after

the other the Market Crashed resulting in the Great Depression in 1933.

1935-1951
In 1935 there was the creation of the Federal Open Market Committee. During that time the Employment Act added the goal of the promise of maximum employment to the list of federal responsibilities. The Federal Reserve was committed to maintaining a low rate interest peg on government bonds in 1942 after World War II began. The Fed was forced to give up the control of the size of the portfolio and the amount of money invested into stocks.

1970-1980s
In the 70s inflation gradually got worse as producer and consumer prices rose, oil prices, soared and the federal deficit nearly doubled. Then Fed chairman Paul Volcker came in and help control inflation. In 1980 there was an act called the Monetary Control Act and it required the Fed to price its financial service against financial institutions.

1990-2001
The stock market had crashed on October 19, 1987. Then in the 90s the Fed used monetary policy on a number occasions with credit crunch of the early 1990s and the Russian government. The 90s is now known as the general declining of inflation in the U.S. In 2001 there was terrorist attacks on New York, Washington, and Pennsylvania. The attacks not only affected lives but they affected the U.S financial markets.

January of 2003
In this year it changed a lot of things. The Federal reserve change its discount window operation so that the rates at the window is set above the prevailing Fed Funds rate and even provide rationing to banks through interest rates.

2006 and On
This year was the most important in all of the years in a good way. The reason why i am saying this is because there was a bunch of things that was going on the good side for the people of the U.S. In 2007 and 2008 the market began to go into a crisis. In 2009 and 2010 there was promises to the people by the Feds so that if the market would crash it would not be as effective as it was in history.