Events

Federal Reserve Act of 1913

Federal Reserve Act of 1913

Federal Reserve Act of 1913
Legislation

More About Federal Reserve Act of 1913

  • Section 13(3) grants the Fed authority to lend to non-member banks
  • Stipulates that the Fed can only own paper (assets) that are backed up by the full fait of the US Government (Treasuries, etc.)
    • They circumvented this rule during the 2020 Covid crisis by setting up special purpose entities
    • Allows them to purchase anything they want - including corporate bonds, ETFs or even stocks
    • The legality of this wasn't clear (circa 20200