1951 | John H. Cochrane | Feb 17, 2026 | The Grumpy Economist

> "After World War II ended, the Fed continued its wartime pegging of interest rates. The **Treasury-Fed Accord, announced March 4, 1951, freed the Fed from that obligation**." > "The Fed **pegged long term interest rates at 2.5% during WWII**, to hold down interest costs and keep up the prices at which the government sold debt. Inflation surged in **1947** and **1948** when price controls were lifted, but…