Fed in 2008 Showed Panic of 1907 Was Excessive: Cutting Research

The Federal Reserve has learned how to lessen economic slumps as it turns 100 years old.

An analysis by San Francisco Fed economists Early Elias and Oscar Jorda found that if there had been a central bank during the financial panic of 1907 to lower interest rates as much as the Fed did during the 2008 turmoil, the U.S. economy would have contracted two percentage points less than it actually did.