The Federal Reserve banks were not allowed to change their discount rate when the central bank was chartered; this power was acquired later with passage of the Glass-Steagall Act.

Question

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The Federal Reserve banks were allowed to change their discount rate from the beginning, as the Federal Reserve Act of 1913 granted them this power. The Glass-Steagall Act, passed in 1933, dealt with other banking reforms.

The Federal Reserve Banks Were Not Allowed to Change Their