The Fed-Treasury Accord of March 1951 provided the Fed greater freedom to
A)let interest rates increase.
B)let unemployment increase.
C)let inflation accelerate.
D)let exchange rates increase.

Question

Quizplus · Accepted Answer

The Fed-Treasury Accord of March 1951 allowed the Federal Reserve greater freedom to let interest rates increase by freeing the Fed from its obligation to support government bond prices. Prior to this accord, the Fed was required to maintain a low interest rate environment to support the government's bond prices.

The Fed-Treasury Accord of March 1951 Provided the Fed Greater