DEFINITION of 'Monetary Accord Of 1951'
A 1951 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.
BREAKING DOWN 'Monetary Accord Of 1951'
The Fed first acquired responsibility for setting monetary policy in 1913. Through monetary policy, the Fed (the U.S.'s central bank) is able to manipulate the money supply and affect interest rates. While some people believe that the Fed is necessary to smooth out the ups and downs in the economy, others believe that its policies are in fact responsible for the booms and busts of the business cycle.
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Treasury Secretary
The Treasury secretary is the head of the U.S. Department of ... -
Accommodative Monetary Policy
Accommodative monetary policy occurs when a central bank attempts ... -
Treasury Yield
Treasury yield is the return on investment, expressed as a percentage, ... -
Tight Monetary Policy
A course of action undertaken by the Federal Reserve to constrict ... -
30-Year Treasury
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Open Market Operations - OMO
Open market operations refer to the buying and selling of government ...
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Insights
How Much Influence Does The Fed Have?
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Insights
What Does the Federal Reserve Do?
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Insights
How the Federal Reserve Manages Money Supply
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Taxes
The Link Between The Fed, Money, Debt And Taxes
Assets on the Fed's balance sheet, money supply level, national debt level and economic production should be maintained in equilibrium. -
Insights
The Federal Reserve
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Investing
Understanding Treasury Yield
Treasury yield refers to the return on an investment in a U.S. government debt obligation, such as a bill, note or bond. -
Personal Finance
How the Federal Reserve Affects Your Mortgage
The Federal Reserve can impact the cost of funds for banks and consequently for mortgage borrowers when maintaining economic stability. -
Insights
How Monetary Policy Affects Your Investments
Monetary policy changes can have a significant impact on every asset class. investors can position their portfolios to benefit from policy changes and boost returns by being aware of the nuances ...
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Under what circumstances will a government change its monetary policy?
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Who controls the Federal Reserve Bank?
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Which economic factors impact treasury yields?
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