*FED acting as the Treasury's Agent*
From Maple AI. Fed Reserves Assets:
"Foreign Currency (Intermittently, Especially Post-Bretton Woods):
The Fed holds relatively small amounts of major foreign currencies (euros, yen, etc.).
Used historically for foreign exchange (FX) intervention, in coordination with the Treasury, to influence the value of the U.S. dollar. (Note: The Treasury, via the Exchange Stabilization Fund, is the primary actor, but the Fed acts as its agent)."
From Maple AI. Fed Reserves Assets:
"Foreign Currency (Intermittently, Especially Post-Bretton Woods):
The Fed holds relatively small amounts of major foreign currencies (euros, yen, etc.).
Used historically for foreign exchange (FX) intervention, in coordination with the Treasury, to influence the value of the U.S. dollar. (Note: The Treasury, via the Exchange Stabilization Fund, is the primary actor, but the Fed acts as its agent)."