The Federal Reserve or the Fed has been in controversy when it ceased its money supply expansion spree and begun the process of austere measures post COVID-19. Now let’s discuss who the Fed is, its role, and its involvement in the crypto industry.
Historical Context
Prior to 1907, a relatively weak financial structure in the USA found cheque credit very easily available in the market and financed speculative futures. The speculative excesses reached a climax in the Panic of 190? that was characterized by a series of bank failures triggered by unsuccessful ventures. Senior citizens within the business society, especially through top of the ranked J. P. Morgan, took their personal money to restore the financial situation.
This development was followed by the formation of the Federal Reserve, which was aimed at regulating the overall money supply in the system.
Following the calamities of the 1907 economic disaster the National Monetary Commission was established in 1910, which in turn birth the Federal Reserve in the year 1913. The Fed’s primary goal was to act as a central bank to rescue some troubled…
