Which central bank was created in 1913 partly in response to the Panic of 1907?

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The Federal Reserve was created in 1913 partly in response to the Panic of 1907.

The Panic of 1907 was a severe financial crisis in the United States after a failed attempt to corner the stock of United Copper. Runs on banks and trust companies spread, while the absence of a central bank left no permanent institution able to supply emergency liquidity. Financier J. P. Morgan organized private support to stabilize the banking system.

The crisis persuaded many American policymakers that the country needed a more flexible monetary and banking structure. The Aldrich–Vreeland Act of 1908 created emergency currency provisions and established the National Monetary Commission. Its work helped lead to the Federal Reserve Act, signed by President Woodrow Wilson in December 1913.

The Federal Reserve did not exist during the 1907 panic. It was a later institutional response, not an organization that managed the crash as it happened.

Source: Wikipedia · fact-checked Oct. 2026

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