Why was the federation created?

Answer 1

Theoretically it was to to bring federal oversight to a largely unregulated banking industry, which had experienced severe booms and busts over the previous century. In fact, the Great Depression occurred after the creation of the Federal Reserve and many economists beileve that mistakes made by the Federal Reserve created or worsened the Great Depression. The Dollar has lost most of its value since the inception of the Federal Reserve. Historcal fact suggests that the Federal Reserve has been a destabilzing force in the U.S. and world economy.