By Aniket Bose. Edited By Arjun Chandrasekar.
The U.S. Treasury was created in 1789 and is primarily the government department that is in charge of issuing all bonds, notes, and bills in the U.S. Some of the government branches that work under the U.S. Treasury are the Internal Revenue Service (IRS), the U.S. Mint, the Bureau of the Fiscal Service, and the Alcohol and Tobacco Tax Beverage and Trade Bureau. The Treasury is held accountable for the financial policy and monetary policy, along with foreign exchange intervention throughout the U.S.
Understanding the U.S. Treasury
The U.S. is responsible for the progression of growth in the economy and economic security throughout the U.S. It was established by the First Congress of the U.S. in New York on March 4th, 1789. The President and the U.S. Senate work together to nominate someone to be the Secretary of the U.S. treasury. The First Congress came to the decision of establishing a treasury because of the events that transpired after the ratification of the Constitution. The Constitution allowed for a much stronger federal government, and the establishment of a centralized treasury department played a very vital part in that. The first Secretary of the U.S. Treasury, Alexander Hamilton, accomplished plans for the payments of war bonds and establishing an institution consisting of a system that would collect federal taxes.
People that want to borrow money from the U.S. Treasury can by issuing short-term notes known as bills or long-term notes known as bonds. The bonds that are issued by the U.S Treasury have a maturity rate of up to 30 years. For controlling the U.S.’s money supply and interest rates, the Federal Reserve Bank purchases and sells the bills and bonds throughout the U.S. The Treasury Department is directed by the Secretary of the Treasury, who is chosen by the President and approved by the U.S. Senate. The current secretary of the U.S. Treasury is Janet Yellen, and she’s a part of the Biden-Harris Administration. She was also the former chair of the Federal Reserve Bank from 2014 to 2018. (Fun Fact: She is the first woman to hold both positions!)
The U.S. Treasury’s main goal is being able to maintain a strong economy and to produce new job opportunities through the promotion of the conditions that have been able to allow economic growth and stability throughout the U.S. It is a very important department of the U.S. as it has to manage the country’s resources and finances in an effective manner!