The role of the Federal Reserve Bank is to keep inflation and unemployment low.
The responses of the Hoover administration and the Republican controlled Fed after the 1929 Wall Street crash led to the Great Depression. Their combined response led to deflation and magnified a recession into the Great Depression. US President Herbert Hoover, who took office in March 1929 six months before the Wall Street crash made bold statements in his inaugural address and gave a hint of his views on excessive speculation. He spoke of the world having 'reached a higher degree of comfort and security than ever existed before in the history of the world. However, the strong man must at all times be alert to the attack of insidious disease.