One reason the Federal Reserve Board in Washington did not act as a lender of last resort during the early years of the Great Depression, was its power struggle with ____.

Question

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The Federal Reserve Board in Washington had a power struggle with the Federal Reserve Bank of New York during the early years of the Great Depression. This internal conflict within the Federal Reserve System hindered its ability to act effectively as a lender of last resort. The New York Fed, being closer to Wall Street and the banking sector, often had different views on monetary policy and emergency measures than the Board in Washington. This discord contributed to the Federal Reserve's overall ineffectiveness during the critical initial years of the Depression.

One Reason the Federal Reserve Board in Washington Did Not