Which 1907 Wall Street panic prompted the creation of the U.S. Federal Reserve?

The Panic of 1907 was the Wall Street crisis that prompted the creation of the U.S. Federal Reserve.

The panic began in October 1907 after an unsuccessful attempt to corner the stock of United Copper Company. When the scheme failed, depositors rushed to withdraw money from banks and trust companies connected to the speculators. The resulting loss of confidence spread through financial markets.

Financier J. P. Morgan organized private emergency support for banks and trust companies, helping prevent a broader collapse. The episode exposed the United States’ lack of a central bank capable of supplying emergency liquidity.

Congress responded by establishing the National Monetary Commission, whose recommendations helped lead to the Federal Reserve Act of 1913. The panic is sometimes confused with the separate Panic of 1893, another severe U.S. financial crisis.