The Federal Reserve sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.
Federal Funds Rate
The primary way the Federal Reserve implements monetary policy is by targeting the federal funds rate
Great Depression
The worst downturn in U.S. history lasted from 1929 to 1941
WWII and After
The Fed pegged interest rates at a low level during WWII and enforced the peg after the war ended
Support for Specific Institutions
The failures of Bear Stearns and Lehman Brothers and the bailout of AIG occurred in 2008
Fed Credit Programs
The Fed introduced various credit programs to deal with the 2007-09 financial crisis
Subprime Mortgage Crisis
The 2007-10 crisis stemmed in part from an expansion of mortgages to high-risk borrowers
Great Recession and After
The deep, protracted downturn in 2007-09 was followed by an unusually slow recovery
Gramm-Leach-Bliley Act
The 1999 Act promoted financial integration by repealing parts of the Glass-Steagall Act while giving the Fed new supervisory powers
Asian Financial Crisis
A financial crisis started in Thailand in July 1997 and spread across East Asia
Crash of 1987
The Dow dropped 22.6 percent on Black Monday, October 19, 1987
Great Moderation
This period of relative macroeconomic stability lasted from the mid-1980s to 2007
Recession of 1981-82
This economic downturn was triggered by tight monetary policy in an effort to fight inflation
Fed’s Anti-Inflation Actions
In 1979, Fed Chairman Paul Volcker announced new anti-inflation measures
Full Employment and Balanced Growth Act
Commonly called Humphrey-Hawkins, the 1978 Act set new goals for the nation’s economic policymakers
Oil Shock of 1978-79
The second oil shock of the 1970s was associated with events in the Middle East
Federal Reserve Reform Act
This 1977 law was instrumental in shaping the current Fed
Oil Shock of 1973-74
An oil embargo in the early 1970s complicated the U.S. macroeconomic environment
Gold Convertibility Ends
President Nixon's 1971 economic plan, sometimes referred to as "Nixonomics," ended gold convertibility and imposed wage and price controls
![Close-up of a "Whip Inflation Now" [WIN] button, President Ford's symbol of the fight against inflation.](/-/media/images/great_inflation_1_720x450.jpg)
Great Inflation
The defining macroeconomic period of the second half of the 20th century lasted from 1965 to 1982
Bretton Woods Launched
The international currency system became operational in 1958
Treasury-Fed Accord
The 1951 agreement that laid the foundation for the modern Federal Reserve
Employment Act
President Truman signed the Act in 1946 in the aftermath of WWII
WWII and Its Aftermath
Monetary policy fundamentally changed during the period of 1941 to 1951
Fed's Role During WWII
The Federal Reserve supported the war effort in several ways
Recession of 1937-38
America’s third-worst downturn of the 20th century
Banking Act of 1935
This legislation restructured the Fed in both cosmetic and consequential ways
Gold Reserve Act
The 1934 law was the culmination of FDR’s controversial gold program
Roosevelt’s Gold Program
The controversial and consequential policies of FDR regarding gold and dollars
Emergency Banking Act
The 1933 law was aimed at restoring public confidence in the nation’s financial system
Banking Panics of 1931-33
Earlier regional banking panics turned into a nationwide financial crisis in fall 1931
Banking Panics of 1930-31
The U.S. appeared to be poised for economic recovery when a series of bank panics began in fall 1930
Crash of 1929
On October 28, 1929, the Dow declined nearly 13 percent
