History·24 February 2026·4 min read
The Federal Reserve — America's central bank
Founded in 1913 after repeated banking panics, the "Fed" is today the most powerful central bank in the world.
The Federal Reserve ("the Fed") was created in 1913, after the US had suffered repeated banking panics with no institution to stabilize the system. It issues the dollar and sets the world's benchmark interest rate.
Decisions that move the world
Because the dollar is the world's currency, the Fed's decisions affect economies across the globe — including our own rates and exchange rate. It's perhaps the clearest proof of a central bank's power.
