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The Federal Reserve sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.

The Federal Reserve sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.


The worst downturn in U.S. history lasted from 1929 to 1941
Great Depression

The worst downturn in U.S. history lasted from 1929 to 1941

The Fed pegged interest rates at a low level during WWII and enforced the peg after the war ended
WWII and After

The Fed pegged interest rates at a low level during WWII and enforced the peg after the war ended

The failures of Bear Stearns and Lehman Brothers and the bailout of AIG occurred in 2008
Support for Specific Institutions

The failures of Bear Stearns and Lehman Brothers and the bailout of AIG occurred in 2008

The Fed introduced various credit programs to deal with the 2007-09 financial crisis
Fed Credit Programs

The Fed introduced various credit programs to deal with the 2007-09 financial crisis

The 2007-10 crisis stemmed in part from an expansion of mortgages to high-risk borrowers
Subprime Mortgage Crisis

The 2007-10 crisis stemmed in part from an expansion of mortgages to high-risk borrowers

The deep, protracted downturn in 2007-09 was followed by an unusually slow recovery
Great Recession and After

The deep, protracted downturn in 2007-09 was followed by an unusually slow recovery

The 1999 Act promoted financial integration by repealing parts of the Glass-Steagall Act while giving the Fed new supervisory powers
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

A financial crisis started in Thailand in July 1997 and spread across East Asia
Asian Financial Crisis

A financial crisis started in Thailand in July 1997 and spread across East Asia

The Dow dropped 22.6 percent on Black Monday, October 19, 1987
Crash of 1987

The Dow dropped 22.6 percent on Black Monday, October 19, 1987

This period of relative macroeconomic stability lasted from the mid-1980s to 2007
Great Moderation

This period of relative macroeconomic stability lasted from the mid-1980s to 2007

This economic downturn was triggered by tight monetary policy in an effort to fight inflation
Recession of 1981-82

This economic downturn was triggered by tight monetary policy in an effort to fight inflation

In 1979, Fed Chairman Paul Volcker announced new anti-inflation measures
Fed’s Anti-Inflation Actions

In 1979, Fed Chairman Paul Volcker announced new anti-inflation measures

Commonly called Humphrey-Hawkins, the 1978 Act set new goals for the nation’s economic policymakers
Full Employment and Balanced Growth Act

Commonly called Humphrey-Hawkins, the 1978 Act set new goals for the nation’s economic policymakers

The second oil shock of the 1970s was associated with events in the Middle East
Oil Shock of 1978-79

The second oil shock of the 1970s was associated with events in the Middle East

This 1977 law was instrumental in shaping the current Fed
Federal Reserve Reform Act

This 1977 law was instrumental in shaping the current Fed

An oil embargo in the early 1970s complicated the U.S. macroeconomic environment
Oil Shock of 1973-74

An oil embargo in the early 1970s complicated the U.S. macroeconomic environment

President Nixon's 1971 economic plan, sometimes referred to as "Nixonomics," ended gold convertibility and imposed wage and price controls
Gold Convertibility Ends

President Nixon's 1971 economic plan, sometimes referred to as "Nixonomics," ended gold convertibility and imposed wage and price controls

The defining macroeconomic period of the second half of the 20th century lasted from 1965 to 1982
Great Inflation

The defining macroeconomic period of the second half of the 20th century lasted from 1965 to 1982

The international currency system became operational in 1958
Bretton Woods Launched

The international currency system became operational in 1958

The 1951 agreement that laid the foundation for the modern Federal Reserve
Treasury-Fed Accord

The 1951 agreement that laid the foundation for the modern Federal Reserve

President Truman signed the Act in 1946 in the aftermath of WWII
Employment Act

President Truman signed the Act in 1946 in the aftermath of WWII

Monetary policy fundamentally changed during the period of 1941 to 1951
WWII and Its Aftermath

Monetary policy fundamentally changed during the period of 1941 to 1951

The Federal Reserve supported the war effort in several ways
Fed's Role During WWII

The Federal Reserve supported the war effort in several ways

America’s third-worst downturn of the 20th century
Recession of 1937-38

America’s third-worst downturn of the 20th century

This legislation restructured the Fed in both cosmetic and consequential ways
Banking Act of 1935

This legislation restructured the Fed in both cosmetic and consequential ways

The 1934 law was the culmination of FDR’s controversial gold program
Gold Reserve Act

The 1934 law was the culmination of FDR’s controversial gold program

The controversial and consequential policies of FDR regarding gold and dollars
Roosevelt’s Gold Program

The controversial and consequential policies of FDR regarding gold and dollars

The 1933 law was aimed at restoring public confidence in the nation’s financial system
Emergency Banking Act

The 1933 law was aimed at restoring public confidence in the nation’s financial system

Earlier regional banking panics turned into a nationwide financial crisis in fall 1931
Banking Panics of 1931-33

Earlier regional banking panics turned into a nationwide financial crisis in fall 1931

The U.S. appeared to be poised for economic recovery when a series of bank panics began in fall 1930
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

On October 28, 1929, the Dow declined nearly 13 percent
Crash of 1929

On October 28, 1929, the Dow declined nearly 13 percent