The Federal Reserve Banks as fiscal agents and depositories of the United States

Hillery, Paula V.; Thompson, Stephen E.

doi:10.17016/bulletin.2000.86-4

Journal Article

The Federal Reserve Banks as fiscal agents and depositories of the United States

Abstract: The Federal Reserve, the nation's central bank, is also the U.S. government's bank. As fiscal agents of the United States, the Federal Reserve Banks provide the Department of the Treasury with services related to the federal debt-receiving bids for auction of Treasury securities and processing securities transactions. As depositories, the Federal Reserve Banks provide payment-related services to the Treasury and other government agencies - handling the government's account by accepting deposits and clearing payments. This article describes the nature of the primary fiscal agency and depository services required by the United States, explains how the Reserve Banks meet those requirements, and discusses the reimbursement for these services.

JEL Classification: E58; E62;

https://doi.org/10.17016/bulletin.2000.86-4