For the Federal Reserve

Arguments for the Federal Reserve

The Federal Reserve has the ability to alleviate some economic turmoil through its ability to adjust the money supply, as an overnight lender of funds, and through regulation of the banking system and specifically the member banks. First, the Federal Reserve established a national currency. Prior to the Fed, there were over 30,000 currencies in the USA. The Federal Reserve made a singular currency valid throughout the country. Next, the Fed protects small banks. Without the Fed, larger banks would have a great deal of power over small banks, potentially causing them to fail. The Fed helps to control inflation and deflation, keeping the country running smoothly in terms of finances.The Federal Reserve helps to represent America and its financial interests. Without the Fed, the interests are represented by banks, clearly not the healthiest financial option as banks are concerned about private rather than public interests. Lastly, banks are required to undergo an impartial, outside audit done by the Federal Reserve. If the Fed did not exist, all audits would take place internally, causing corruption among the banks.