The Fed and Times of Crisis
What was life like before the Federal Reserve? In 1907, a financial panic that threatened to annihilate the economy led to the Federal Reserve System’s creation.
The Fed’s most important job during a crisis is to keep money available. However, when the unthinkable happens, moving money can become a logistical nightmare in an instant.
Hurricane Katrina devastated the Gulf of Mexico coast in August 2005, but a functioning payment system helped residents get basic necessities in a dire situation.
In 2007, less than two years after Federal Reserve Chairman Ben Bernanke took office, he faced the worst financial crisis since the Great Depression.