Why The Economy Is Safer Today Than In 1907 The Federal Reserve is designed to deal with financial panics because it was created by one.
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What The Fed Was Designed To Do

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COVID-19 isn't the first natural disaster to shake the world economy, but today we're more prepared for one than ever.

In 1906, an earthquake in San Francisco started a chain of events that destroyed the U.S. economy by 1907. It also led to the creation of the country's most powerful economic tool: the Federal Reserve.

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