Review

The Depository Institutions Deregulation and Monetary Control Act enacted by Congress in March 1930 will significantly affect the competitive environment in which financial institutions operate. This act broadens both the asset and liability powers of savings and loan associations, mutual savings banks, and credit unions, opening opportunities for these institutions that traditionally have been limited to banks. 

The Federal Reserve System changed its approach to implementing monetary policy on October 6, 1979. Prior to that date, it attempted to reduce fluctuations in short-run interest rates as a means of achieving, along with interest rate stability, a degree of control over movements in the monetary aggregates.