Anonymous asked in Business & FinanceOther - Business & Finance · 1 decade ago

Does the U.S. Department of Treasury and the Federal Reserve both issue bonds?

Do they both issue bonds? Or does only one of them?

1 Answer

  • 1 decade ago
    Favorite Answer

    The Federal Reserve and the Department of the Treasury work together to borrow money when the government needs to raise cash.

    The Federal Reserve issues U.S. Treasury securities and conducts Treasury securities auctions, selling these securities on behalf of the U.S Department of the Treasury.

    Examples of Treasury securities include:

    •Treasury bonds

    •Treasury bills

    •Treasury notes

    •Treasury inflation-protected securities (TIPS)

    So, only one of them issues bonds, but the bonds are honored by both the Federal Reserve and the U.S. Department of Treasury

Still have questions? Get your answers by asking now.