Prompt Cast
The Creation of the Federal Reserve in the United States
TLDR The Federal Reserve was created in 1913 after J.P. Morgan orchestrated a plan during the panic of 1907, leading to the signing of the Federal Reserve Act by President Woodrow Wilson, establishing 12 central banks across the United States.
Timestamped Summary
00:00
The story of the creation of the Federal Reserve involves secrecy, powerful bankers, and a nation's ambivalence towards a central bank.
02:58
During the panic of 1907, J.P. Morgan took on the responsibility of saving the U.S. economy by managing the crisis from his private library, where powerful financiers gathered to address the financial turmoil.
05:10
J.P. Morgan orchestrated a plan during the panic of 1907, gathering powerful financiers in his library, locking the doors until they agreed to contribute $25 million each to save healthy trusts and banks, effectively ending the crisis.
07:26
Senator Nelson Aldrich, after witnessing multiple financial panics in the U.S., decides to push for the creation of a central bank, drawing inspiration from European models and aiming to win over Congress and the American people.
09:44
Senator Nelson Aldrich organizes a secret meeting with powerful bankers, disguised as duck hunters, to work on a plan for a new central bank for the United States.
11:56
Bankers, including Aldrich, meet at Jekyll Island to devise a plan for multiple decentralized central banks across the United States, known as the Aldrich plan.
14:05
The Federal Reserve Act was signed by President Woodrow Wilson in December 1913, creating 12 central banks across the United States, leading to ongoing debates and evolution of the Fed's role and power over the past century.
