The Federal Reserve prevented the United States from going under and experiencing banking panics like those of 1930, during the Great Depression. During the 1930s, more than 9,000 banks failed, causing serious damage to the American economy. The 1930s were difficult times that the United States never wanted to experience again. President Woodrow Wilson signed the Federal Reserve Act of 1913, which helped during the Great Depression, but not as much as it could. The Federal Reserve has changed since then and is doing much more than before. The Federal Reserve issues money, sets reserve requirements, lends money to banks, cashes checks, acts as fiscal agent for the United States, supervises banks, and controls the money supply. The Federal Reserve Act was signed by President Woodrow Wilson on December 23, 1913. Although the idea of ​​a central bank was first mooted by Alexander Hamilton in 1789 during the ratification of the U.S. Constitution; but was refused because the constitution did not give this power to the government. Before the creation of the Federal Reserve Bank, two banks served as the central bank of the United States. The first bank was opened in 1791 and failed in 1811 because Congress did not want to renew the contract. The Second Bank of the United States was established in 1816 under President Jackson but went bankrupt in 1836. The Federal Reserve was established in the United States at a time when the country was in a deep financial crisis. During these final crises, the American people rushed to their banks and withdrew their deposits, causing bank failures; it was called a panic. This would cause an effect called the domino effect in which customers would run to the banks to withdraw their money, causing the banks to fail because the banks did not have enough paper......were bankrupt, causing many bankruptcies . negatively affecting the economy. The Fed had to intervene to stop the rise in bankruptcies and the recession. The Fed then said it would lower the discount rate to help the banks and the American people and force the government to spend money and sell securities. The Fed reduced unemployment, helped the economy grow, and brought the United States out of recession, and it still does today. The Federal Reserve System has helped the United States in many ways, but the main one is maintaining the economic health of the United States. The Federal Reserve is so fond of supervising banks, making money and controlling it. Change monetary policies and try to keep the United States in good shape with economic growth and low unemployment. Without the Fed. The United States would not have been the great country of today with a great economy, not perfect but stable..