Why is the Federal Reserve allowed to &quot;coin Money&quot; and define exchange rates?
<p>According the to United States Constitution <a href="http://constitutionus.com/#a1s8" rel="nofollow noreferrer">Article 1 Section 8</a>,</p>

<blockquote>
  <p>The Congress shall have Power To coin Money, regulate the Value thereof, and of foreign Coin, ...</p>
</blockquote>

<p>But it is the Federal Reserve, not Congress, who is currently "coins Money" and defines exchange rates for foreign currencies. </p>

<p>Why isn't it a constitutional violation? </p>

<p>It's not a violation because Congress <a href="https://www.federalreserve.gov/aboutthefed/fract.htm" rel="noreferrer">created and gave</a> the Federal Reserve the power to issue Federal Reserve Notes in the Federal Reserve Act which created the Federal Reserve. More here on the relationship between Congress and the Fed: <a href="https://www.bloomberg.com/view/articles/2017-09-27/how-congress-governs-the-federal-reserve" rel="noreferrer">https://www.bloomberg.com/view/articles/2017-09-27/how-congress-governs-the-federal-reserve</a>. </p>

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