The Accord refers to the 1951 agreement that resolved friction between the Treasury and the Federal Reserve. Fed Chair Thomas B. McCabe and Treasury Secretary John W. Synder reached an agreement, brokered by Assistant Secretary of the Treasury William McChesney Martin Jr. on March 4, 1951, that began the Fed’s independent operations, providing for the Fed to conduct open market operations in Treasuries only, allowing the market to determine long-term Treasury bond rates.
Glossary Term