Who Was the First President of the Federal Reserve?
First President of the Federal Reserve
Before the Federal Reserve, financial panics, seasonal cash crunches, and high rates of bank failure rendered the United States a risky place to invest money. In an effort to stave off such crises, many investors pushed Congress for central control over the nation’s monetary system. After a series of such panics, the Federal Reserve was created in 1913 with the enactment of the Federal Reserve Act.
As the nation’s central bank, the Federal Reserve has a unique set of responsibilities. Its mission is to maintain stable prices and stable employment while also helping to stimulate economic growth and keep inflation in check. The Fed accomplishes its goals primarily through a complex system of regional and national banks, which are overseen by the Federal Reserve Board in Washington, D.C.
Despite this vast amount of power, the Federal Reserve is a relatively obscure government body that has caused many debates and friction with lawmakers and presidents alike. Some economists feel the Fed’s aggressive monetary policy risks inflation and asset bubbles, while others believe it unfairly favors big business over workers.
Who Was the First President of the Federal Reserve?
The first president of the Federal Reserve, Strong ushered in a new era for the institution by recognizing that gold no longer controlled credit in the banking system. He introduced open market operations, which allowed the Fed to purchase and sell securities in order to influence broader markets. He also elevated the stature of the Fed by promoting relations with other central banks, particularly the Bank of England.
The second president of the Federal Reserve, Volcker is best known for his work to fight inflation in the early 1980s. Inflation had begun to stifle the economy and create what is now known as “stagflation,” a combination of slow economic growth and high unemployment. To combat this, Volcker restricted the supply of money in the economy by raising interest rates to double-digit levels, a move he dubbed “shock therapy.”
A central figure at the Federal Reserve for more than 40 years, Greenspan was credited with leading America through the long expansion of the 1990s. He favored low interest rates to encourage investment and growth, but some experts criticize him for not doing enough to regulate risky financial products and the housing bubble that ended with the 2008 crisis.
As the current president of the Federal Reserve Bank of Boston, Rosengren focuses on understanding the economic challenges facing the region’s communities and developing appropriate policies to address them. He leads a team of more than 200 employees who serve the Federal Reserve’s Second District, which covers New York State, northern New Jersey, southwestern Connecticut, and Puerto Rico. In addition to his role on the Board of Governors, he serves as the Chairman of the Joint Committee on Community Affairs, the Fed’s principal forum for public outreach and engagement on key community issues. The Committee consists of community leaders who represent the diversity of the region.