Sublime

the main business of a bank is to exchange its credit for the credit of its customers.” The point of a central bank was to be a banker to banks, to use its credit to supplement that of each individual institution.

The first and largest dollar spike occurred in the mid-1980’s. From the 1970’s and into the early 1980’s, the U.S. dollar encountered serious devaluation and inflation, so Fed Chairman Paul Volcker hiked interest rates up to the double digits to stabilize the dollar and force inflation back down. This, however, made the real interest rate on the do

The Federal Reserve regulates commercial banks, supports the banking infrastructure, and generally makes the plumbing of the financial system work.

Bizjournal.com

When the banks reopened Monday, reassured depositors returned much of the money they had withdrawn. Not only was there no run on the banks, but the Federal Reserve reported that deposits exceeded withdrawals by more than two to one despite the cash-starved existence most had led the past week.