William McChesney Martin, Jr., Chairman of the Federal Reserve Board of Governors (a Federal agency) that oversees the privately owned Federal Reserve System of (central) Banks, at a meeting of the Federal Open Market Committee, suggests the idea that the FRSB become involved in foreign currency exchange as a means of influencing the command-market value of the “dollar” (a Bill of Credit), something that the department of the treasury is already doing through the Exchange Stabilization Fund.
NOTE: The Federal Reserve Act does not explicitly permit FRSB to engage in the foreign exchange markets, nor does it permit the FRSB to obtain foreign exchange from the United States Treasury.
[restored 10/1/2022] Thanks to Jim Lorenz for this entry.
Subsequent Events:
References:
**The Fed Debate in the 1960s over Sterilized Foreign Exchange Intervention**
www.marketskeptics.com/2015/10/fed-debate-in-1960s-over-sterilized.html
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