The Federal Reserve was also less than fully independent during and just after World War II, when it agreed to keep Treasury yields at low  BIS central bankers’ speeches  1  levels to reduce the cost of financing wartime deficits.
After the war, as inflation pressures rose, Federal Reserve policymakers wanted to return to independent rate setting, but the Treasury demurred, hoping to keep the cost of servicing the national debt low. The conflict was resolved in 1951 through the Treasury-Fed Accord, an agreement that reestablished the Federal Reserve’s ability to set rates as dictated by the needs of the broader economy.