On March 4, 1951, the Federal Reserve and the Treasury released a joint announcement of an understanding that has come to be known as the Treasury-Federal Reserve Accord. This watershed agreement released the Federal Reserve from the obligation to support the market for U.S. government debt at pegged prices and made possible the independent conduct of monetary policy. The dramatic events of 1951 laid the institutional foundation for the Fed's pursuit of low inflation and economic stabilization.

The Treasury and the Federal Reserve System have reached full accord with respect to policies to be pursued in furthering their common purpose to assure the successful financing of the Government's requirements and, at the same time, to minimize monetization of the public debt.