Sterilized Foreign Exchange Intervention: The Fed Debate in the 1960s
26 Pages Posted: 17 Nov 2012
Date Written: 1996
The Federal Reserve System began its intervention in the market for foreign exchange in 1962. Such intervention is undertaken at the behest of the Treasury. That year there was a spirited debate within the Federal Reserve over whether this involvement would be consistent with the Fed's independence. That debate dealt with some of the fundamental issues of the Fed's role in the U.S. government.
Suggested Citation: Suggested Citation