The Treasury Department has decided to move a significant amount of funds from the Federal Reserve to other locations throughout the duration of the financial crisis. This move allows the Federal Reserve to freely loan funds to the market without having to impact the federal funds rate, which has important significance to banks and other lenders.
 
Right now, Treasury holds $200 billion in a Supplementary Financing Account with the Fed, but it plans to cut that amount to $15 billion over time. Analysts think that this move comes as part of the Treasury’s attempt to avoid hitting the federal debt ceiling, …read more

On Sunday, The White House announced three nominees for senior posts at the Treasury Department. Just days ago, two other contenders withdrew their names claiming concern that the team wasn’t being assembled quickly enough during the financial crisis.
Two months into the Obama presidency, only Treasury Secretary Timothy Geithner is in place in the Treasury.
The three new nominees are:

David Cohen – assistant Treasury secretary for terrorist financing
Alan Krueger – assistant secretary for economic policy
Kim Wallace – assistant secretary for legislative affairs

“Out of crisis arises opportunity,” President Obama said in a statement.
“With the leadership of these accomplished individuals and our whole …read more