What is the name of the U.S. legislation that established the Federal Reserve System in 1913?

The U.S. legislation that established the Federal Reserve System in 1913 was the Federal Reserve Act. President Woodrow Wilson signed it on December 23, 1913, creating the United States’ modern central-banking framework.

The act followed years of debate over America’s unstable banking system. The Panic of 1907, when the country faced severe withdrawals and market turmoil, strengthened the case for a central institution that could supply emergency liquidity and make the currency more elastic.

Rather than create one single national bank, the law organized a system of regional Federal Reserve Banks overseen by a Federal Reserve Board. The original structure included 12 districts, balancing national coordination with regional representation.

The act is often confused with the Banking Act of 1933, also known as Glass-Steagall. That later law created federal deposit insurance and separated commercial and investment banking; it did not establish the Federal Reserve.