In practice, however, the Treasury continued to have considerable sway over monetary policy after 1933, with one economic historian describing the Fed as “in the back seat.”22 During World War II, the Federal Reserve used its tools to support the war financing efforts. However, even after the war, Federal Reserve policy remained subject to considerable Treasury influence.
These could be a form of stablecoin. If this is how the system develops, it will be important that these tokens are backed by high-quality assets and that they meet high standards for safety and security.