The Federal Reserve Act, signed into law by President Woodrow Wilson on December 23, 1913, marked a pivotal moment in American financial history. It was enacted in response to a series of devastating financial panics, most notably the Panic of 1907, which exposed the vulnerabilities of the nation’s banking system. The Act aimed to create a more stable, flexible, and efficient financial system, ultimately addressing the persistent problem of money supply inelasticity and the lack of a central authority to oversee banks.