Woodrow Wilson started banking reform. Representative Glass and Prof. Willis worked to write the Federal Reserve Act
State-chartered and unchartered ‘free banks’ took hold; different notes sand demand deposits
Second Bank chartered; Andrew Jackson opposed the Second bank as controlled by ‘money interests’
Government issued ‘fiat’ money (legal tender)to fund Revolutionary War.
After WWII the Employment Act added employment to the Fed’s responsibilities.
1956- Bank Holding Act named the Fed as regulator for bank holding companies.
1978Humphrey-Hawkins Act required the Fed Chairman to report to Congress twice a year.
US officially declared war 1917