“The Federal Reserve System of 1913 evolved out of a search for consensus among bankers, politicians, and some academic experts. It was a move toward ‘central bank’ regulation in the European sense …. [The System] seemed to resolve the outstanding problems in money and banking. Federal Reserve banknotes could grow with expanding commercial paper and economic prosperity, and assure a more adequate, reliable monetary growth.” William A. Lovett, Banking and Financial Institutions Law in a Nutshell 14–15 (1997).
federal reserve system
Federal Reserve System. The central bank that sets credit and monetary policy by fixing the reserves to be maintained by depository institutions, determining the discount rate charged by Federal Reserve Banks, and regulating the amount of credit that may be extended on any security. • The Federal Reserve System was established by the Federal Reserve Act of 1913. 12 USCA § 221. It comprises 12 central banks supervised by a Board of Governors whose members are appointed by the President and confirmed by the Senate. — Abbr. FRS; Fed. [Cases: Banks and Banking 351–359. C.J.S. Banks and Banking §§ 650–662, 676–678, 682–687, 746.]
