Journal Article
Origins of the use of Treasury debt in open market operations: lessons for the present
Abstract: The Federal Reserve currently conducts open market operations primarily in Treasury securities. It has not always done so. In its earliest years, the Fed conducted open market operations primarily in private securities, such as bankers' acceptances. The Fed's choice of instruments was based both on economic doctrine and to help foster a liquid secondary market in these securities. The move to reliance on Treasury securities resulted from changes in the financial markets and the prevailing economic doctrine. These historical antecedents may have relevance for current problems facing the Federal Reserve.
Keywords: Federal Reserve banks; Open market operations; Debt;
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Bibliographic Information
Provider: Federal Reserve Bank of Chicago
Part of Series: Economic Perspectives
Publication Date: 2002
Volume: 26
Issue: Q I
Pages: 45-54