The Federal Reserve was created after the Panic of 1907 to provide the United States with a central banking system. Congress passed the Federal Reserve Act in 1913, creating the Federal Reserve System.
The Panic began after a failed attempt to corner the stock of United Copper Company triggered runs on banks and trust companies. Financier J. P. Morgan helped coordinate private emergency lending, highlighting the absence of a formal lender of last resort.
The Federal Reserve was designed to make the financial system more stable, manage the money supply, and provide an elastic currency. The Securities and Exchange Commission and the Federal Deposit Insurance Corporation were created later, during the New Deal era.