Did you know? The creation of the Federal Reserve in 1913 marked one of the most significant milestones in U.S. financial history. Before its establishment, the country faced frequent banking panics and lacked a central authority to manage monetary policy. The Federal Reserve introduced greater stability by regulating the money supply, supervising banks, and serving as a lender of last resort. Today, it plays a critical role in controlling inflation, setting interest rates, and supporting employment. Learning how this institution works helps you better understand credit, savings, and how financial decisions impact the broader economy.