What is the Treasury-Fed Accord of 1951, and why is it important?
What is the Treasury-Fed Accord of 1951, and why is it important?
- May 21, 2026
- Research by Gary Richardson, economics, featured by Brookings
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Did the 1951 Accord establish the Fed’s independence from the President and the Treasury? No. [Fed economist Edward] Nelson and other scholars—including Gary Richardson of the University of California, Irvine, and David Wilcox, a former senior Fed economist … observe that the Fed’s independence dates to the Banking Act of 1935. … “If legislation undergirds the Fed’s independence, then the strong presumption would be that only an act of Congress changing that law or a decision of the Supreme Court…could fundamentally reshape the president’s ability to influence monetary policy.”
For the full story, please visit Brookings.
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