Which central bank was created after the Panic of 1907 to stabilize U.S. financial markets?

The Federal Reserve was created after the Panic of 1907 to stabilize U.S. financial markets.

The Panic of 1907 began after a failed attempt to corner the shares of United Copper Company triggered runs on trust companies and banks. The crisis spread through the financial system, and the New York Stock Exchange suffered a sharp fall. The United States lacked a modern central bank that could reliably act as lender of last resort.

Financier J. P. Morgan organized emergency private support, including efforts to keep banks and the exchange operating. The episode demonstrated how dependent the country was on individual financiers during a systemic panic.

The National Monetary Commission studied reforms after the crisis. Its work helped lead to the Federal Reserve Act of 1913, which created the Federal Reserve System. The central bank was therefore a consequence of lessons drawn from the panic, rather than an institution that already existed to prevent it.