4 Market participants are facing issues and questions that are unfamiliar and that cannot be easily answered, which is creating this uncertainty. The first source of this uncertainty is the unique nature of the U.S. experience with the kind of housing crisis that the U.S. economy is facing.
Some expansions to the Bank’s powers to grant credit were brought about by amendments to the Currency and Banking Act in 1923 and 1930. A more comprehensive revision of the Bank’s powers was affected in 1944. Subsequently, many changes were also made to strengthen the bank’s hand in carrying out its functions.