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Treasury Secretary

Treasury Secretary
EconomyGovernment and Policy

What Is the Treasury Secretary?

The Treasury Secretary is the head of the U.S. Department of the Treasury. The Secretary of the Treasury is quite possibly of the main office in the executive branch, closely resembling that of finance serve in different countries and responsible for all fiscal policy matters. The current Secretary of the Treasury is former Federal Reserve chair, Janet Yellen, who was confirmed as the 78th Treasury Secretary on Jan. 26, 2021. She is the first lady to hold either position.

Figuring out the Treasury Secretary

The Treasury secretary is a member of the President's bureau and fifth in the line of succession to President. As head of the Department of the Treasury, the Secretary is the President's principal economic adviser, emphatically affecting domestic and international policies, with a particular spotlight on tax and spending policy. The Treasury Secretary is delegated by the President and is subject to confirmation by the Senate.

The Secretary of the Treasury is much of the time considered one of the four most important bureau positions, alongside the Secretary of Defense, Secretary of State, and the Attorney General. The Treasury Secretary is likewise a not-legal member of the U.S. National Security Council, an organization entrusted with instructing and helping the President regarding the United States on issues pertinent to national security and foreign policy.

The Treasury Secretary centers on fiscal policy, while the country's monetary policy is the responsibility of its central bank, the Federal Reserve. While legislation administers the Fed's mission and its leadership is delegated by the President, it is an independent entity and, hence, not housed in that frame of mind of the federal government.

The U.S. Department of the Treasury is separated into two major parts: the departmental offices, which are responsible for drafting fiscal legislation, and the operating bureaus, which are responsible for carrying out said legislation.

Special Considerations

The Treasury of the United States issues the national debt as Treasury securities. It gathers the federal government's tax revenue through the Internal Revenue Service (IRS). From 1862 to 1971, the Treasury issued some or the country's all's paper money, known as United States notes. Starting around 1971, U.S. paper currency has been issued only by the Federal Reserve, yet the Treasury Secretary must in any case sign these notes for them to become legal tender. The Bureau of Engraving and Printing, which produces the notes, is an agency of the Treasury; the U.S. Mint, another Treasury agency, delivers the country's coins.

Through the Office of Foreign Assets Control, the Treasury upholds economic sanctions against foreign countries, companies and people.

History of the Treasury Secretary

The first Treasury Secretary was Alexander Hamilton, George Washington's confidant during the Revolutionary War, who served from Sept. 11, 1789, to Jan. 31, 1795. His contributions to the Treasury's development incorporate the foundation of the U.S. Mint, the First National Bank — however its charter was permitted to lapse in 1811, and the full funding of the national debt — along with the assumption of cumulative state debts, which laid out the reputation of the U.S. as a dependable borrower. Today, Treasury securities are considered among the most secure investments in the world, and their interest rate is much of the time utilized as a proxy for the hypothetical risk-free rate of return.

Features

  • The U.S. Department of the Treasury is responsible for all matters connecting with fiscal policy in the United States.
  • Treasury Secretaries act as head of the U.S. Department of the Treasury. The position was made in 1789 and was first held by Alexander Hamilton under President George Washington.
  • The Treasury Secretary is the primary economic advisor to the President and emphatically affects different domestic and international policies.
  • Treasury Secretaries are part of the President's bureau and are fifth in the line of succession to the President.
  • The current Treasury Secretary is Janet Yellen, former chair of the Federal Reserve. She is the first lady to hold either position.