Wilson signs the Federal Reserve Act, creating the U.S. central bank

President Woodrow Wilson signed the Federal Reserve Act on December 23, 1913, establishing 12 regional reserve banks overseen by a Board of Governors in Washington. The law gave the Federal Reserve authority to issue currency, set the discount rate, and serve as a lender of last resort to prevent bank panics. Congress designed the structure to give the president appointment power over governors while insulating monetary policy from day-to-day political pressure.