The Treasury-Fed Accord: A New Narrative Account

FRB Richmond Economic Quarterly, vol. 87, no. 1, Winter 2001, pp. 33-56

24 Pages Posted: 2 Dec 2012

See all articles by Robert L. Hetzel

Robert L. Hetzel

Federal Reserve Banks - Federal Reserve Bank of Richmond

Ralph Leach

affiliation not provided to SSRN

Date Written: November 29, 2012

Abstract

Until March 1951, the Treasury compelled the Federal Reserve System to continue the pegging of government security prices that had begun in World War II. To break free from that obligation, the Fed would have to win a public confrontation with the President of the United States. Such an outcome appeared improbable given the historical context of the Korean War. The authors chronicle the dramatic confrontation between the Fed and the White House that ended with the March 1951 Accord.

Suggested Citation

Hetzel, Robert L. and Leach, Ralph, The Treasury-Fed Accord: A New Narrative Account (November 29, 2012). FRB Richmond Economic Quarterly, vol. 87, no. 1, Winter 2001, pp. 33-56, Available at SSRN: https://ssrn.com/abstract=2182611

Robert L. Hetzel (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

Ralph Leach

affiliation not provided to SSRN

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