The Federal Reserve is the central banking system of the United States of America and, as such, one of the most powerful entities in the country. The Fed, as it is informally known, was created with the enactment of the Federal Reserve Act of 1913, intended to preserve a system of checks and balances and the decentralized power reflected in the U.S. Constitution. It was sanctioned largely in response to a series of financial upheavals, particularly a particularly serious panic in 1907. Throughout its existence and that of our country, there have been many instances where economic unrest and We need to intervene in the market to correct these problems before they spiral further out of control to the detriment of our countries. Over the decades, as new complications have arisen, the Fed has evolved and expanded. Initially, the Fed was to act as an overseer for small banks, keeping them afloat while subjecting them to strict regulations; since then, it has progressed following disastrous events. The Great Depression, for example, led to several changes in policies and regulations, as did the recession we recently endured. Some policies and tools used have been very controversial, but have left little recourse and have been acted upon. To say the least, the recent recession has been just as complex and controversial as one might expect, but the Fed's course of action in attacking it has been even more so. The Fed's tasks today are to manage the country's monetary policy, supervise and regulate banking institutions and maintain the stability of the financial system. The Fed controls the growth of the nation's money supply, sets reserve requirements, approves proposed mergers ... middle of paper ...... and the financial crisis » Greater Austin Chamber of Commerce, Austin, Texas, December 1, 2008. The Wall Street Journal. "10 Important Functions Performed by the Federal Reserve That You've Never Heard of" CurencyTrading.Net. ^ Merrism, Dwight. "Cause of Housing Bubble Burst and Recession Revealed: It's Management of Growth » Planetizen. http://www.planetizen.com/node/41867 Retrieved October 1, 2011Zandi, Mark. “FOMC Preview: All That's Needed” Moody Analytics November 1, 2010. Dismal Scientist. /www.economy.com/dismal/article_free.asp?cid=194512Retrieved October 1 2011