Relations with the Federal Reserve
The Secretary of the Treasury is the chief international
monetary policy official of the United States. The Federal
Reserve has separate legal authority to engage in foreign
exchange operations. The Federal Reserve's foreign exchange
operations are conducted in close and continuous consultation
and cooperation with the Secretary to ensure consistency
with U.S. international monetary and financial policy.
The Treasury and the Fed have closely coordinated their
foreign exchange operations since early 1962, when the Federal
Reserve commenced such operations at the request of the
Treasury. Operations are conducted through the Federal Reserve
Bank of New York (FRBNY), as fiscal agent of the United
States and as the operating arm of the Federal Reserve System.
