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Treasury-Federal Reserve Accord Analysis

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In the 1951 the United States Treasury and the Federal Reserve noticed the need for the Fed to acquired their independence. This notion of independence was created by the passing of what is formally known as the Treasury-Federal Reserve Accord. The 1951 Accord was “agreement between the U.S. Secretary of the Treasury and the Federal Reserve Board on government financing and monetary policy. The accord represented the resolution of a major conflict between the Treasury and the Fed over World War II financing. Perhaps most significantly, the accord gave the Fed independence from the Treasury.” Though, the Accord provided the Federal Reserve with their first taste of freedom, it more importantly liberated monetary-policy from the grasp of politicians.
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