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How did the Federal Reserve acquire its role as monetary policy "decider"?

http://richmondfed.org/publications/economic_research/economic_quarterly/pdfs/winter2001/leach.pdf

http://richmondfed.org/publications/economic_research/economic_quarterly/pdfs/winter2001/hetzel.pdf

Also, see the attached essay.

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How did the Federal Reserve acquire its role as monetary policy "decider"?

http://richmondfed.org/publications/economic_research/economic_quarterly/pdfs/winter2001/leach.pdf

http://richmondfed.org/publications/economic_research/economic_quarterly/pdfs/winter2001/hetzel.pdf
About Federal Reserve Board
The Federal Reserve System is a quasi-governmental banking system. Its composition is as follows:
(1) Presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.
(2) The Federal Open Market Committee;
(3) 12 regional Federal Reserve Banks located in major cities throughout the nation; and (4) numerous private member banks, which own varying amounts of stock in the regional
Federal Reserve Banks.

(Wikipedia)
Role as a monetary policy decider

The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements. The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations. Using the three tools, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.
The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy. However, March 4th 1951 is regarded as the Fed's true "Independence Day" (Hetzel and Leach 2001).
Truman replaced McCabe with William McChesney Martin as a Fed Chairman. Under the guidance of Martin who negotiated the March 4th 1951 "accord" between the Treasury and the Fed, modern Fed was born. The accord was :
" The Treasury and the Federal Reserve ...

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