31 U.S.C. § 5301 : US Code - Section 5301: Buying obligations of the United States Government

Search 31 U.S.C. § 5301 : US Code - Section 5301: Buying obligations of the United States Government

(a) The President may direct the Secretary of the Treasury to
make an agreement with the Federal reserve banks and the Board of
Governors of the Federal Reserve System when the President decides
that the foreign commerce of the United States is affected
adversely because -
(1) the value of coins and currency of a foreign country
compared to the present standard value of gold is depreciating;
(2) action is necessary to regulate and maintain the parity of
United States coins and currency;
(3) an economic emergency requires an expansion of credit; or
(4) an expansion of credit is necessary so that the United
States Government and the governments of other countries can
stabilize the value of coins and currencies of a country.
(b) Under an agreement under subsection (a) of this section, the
Board shall permit the banks (and the Board is authorized to permit
the banks notwithstanding another law) to agree that the banks will
-
(1) conduct through each entire specified period open market
operations in obligations of the United States Government or
corporations in which the Government is the majority stockholder;
and
(2) buy directly and hold an additional $3,000,000,000 of
obligations of the Government for each agreed period, unless the
Secretary consents to the sale of the obligations before the end
of the period.
(c) With the approval of the Secretary, the Board may require
Federal reserve banks to take action the Secretary and Board
consider necessary to prevent unreasonable credit expansion.