Which central bank did the 1907 Panic help convince U.S. leaders to create?

The 1907 Panic helped convince U.S. leaders to create the Federal Reserve.

The panic began after a failed attempt to corner the stock of United Copper Company. Runs spread to banks and trust companies, and the Knickerbocker Trust Company collapsed in New York. With no U.S. central bank available to act as a lender of last resort, financier J. P. Morgan helped organize emergency support for the financial system.

The crisis exposed weaknesses in America’s fragmented banking structure. Congress responded by establishing the National Monetary Commission, which studied banking systems abroad and helped shape later reform. The Federal Reserve Act was passed in 1913, creating the Federal Reserve System.

The Federal Reserve was not founded during the panic itself. The 1907 episode was an important catalyst, but the institution came six years later. Its creation gave the United States a central bank responsible for monetary policy, bank supervision, and emergency liquidity.