The Federal Reserve Act of 1913 established the central banking system of the United States. The concept was conceived in 1910 and was a response to the Panic of 1907. The “Fed’s” role has evolved over the years, particularly following the Great Depression. The Federal Reserve regulates and supervises banking institutions to ensure safety and soundness, maintains stability of the nation’s financial system, conducts the nation’s monetary policy, and provides financial services to depository institutions.