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Mar 1, 1006
US housing bubble
The housing bubble shows signs of bursting and the Fed has a plateful of problems to contend with -
The First Bank
In 1789, Alexander Hamilton, Secretary of the U.S. Treasury, started to argue loudly for the creation of a central bank. By 1791, Hamilton's view prevailed. -
The First Hurdle
By the time its charter was up for renewal in 1811, the general feeling was that it had become too powerful. Its charter was not renewed. -
The Second Bank
The structure of the Second Bank was similar to the First Bank, but it was much larger. The stock of the Second Bank was worth $35,000,000. -
Second Bank dissolved
The Independent Treasury Act leaves the national government without a Banking system for the next 5 years. The Secretary of the Treasury deposits the government's money into State Banks. -
The Third Bank
In response to the National Depression in 1907, President Woodrow Wilson pushes for a bill that gives US its central bank. -
The Rise of Checks
Federal Reserve instituted a compulsory system for member banks to accept at par a check drawn upon themselves and presented for payment by a Fed Bank. The Bank's check volumes rose from 8,900 items a month under the old system to 18,000 checks a day through the rest of 1916 -
The Fed during WWI
When the U.S. declared war on Germany in April 1917, the Reserve Banks were authorized to handle the financial operations associated with the war, including the sale of Liberty bonds. -
The Fed during the Depression
Industrial activity reached a low point in during the Great Depression as banks began to feel extreme pressure. -
WWII
After Pearl Harbour, the Chicago Fed found itself responsible for coordinating the Seventh District's bond drives. -
The Fed in the '70s
The Chicago Fed became responsible for overseeing all district banking companies and ensuring that they engaged in activities "closely related to banking." -
The economy crawls
Chairman Paul Volcker announces that the Federal Reserve's monetary policy efforts would focus on reaching target levels of ban -
Raegan calms the nerves
Economy shows signs of improving under the Ronald Raegan administration -
Dot com bubble
Markets crash as the dot com bubble bursts
