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U.S. Treasury

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Definition – What does U.S. Treasury mean?

The U.S. Treasury is the department within the United States Government that is responsible for the creation of U.S. currency. The Treasury has many responsibilities beyond simply creating U.S. dollars (USD), including the collection of revenue (taxes), the funding of the government and the formulation of some fiscal policies.

The U.S. Treasury is officially known as the U.S. Department of the Treasury, but is often referred to simply as “the Treasury.”

ForexTerms explains U.S. Treasury

The Treasury is one part of the overall financial apparatus the United States. The Treasury and the Federal Reserve can work together to create money beyond the set amounts that the Treasury prints to replace damaged bills. By creating excess money, the Treasury and the Fed may also create inflation. For this reason, the policies of the Fed and the Treasury are of great interest to currency traders. The USD is paired with every major currency, so any institution that influences the USD is carefully watched for clues as to what will happen to the value of the dollar in the future.

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