What Is the Treasury Department, and How Does It Affect You?

In a nutshell, the Department of Treasury manages Federal finances once the President, Congress and the Office of Management and Budget set fiscal policy.

The most important way Treasury affects the economy is through auctioning Treasury bills, notes and bonds to pay for the U.S. debt. The interest paid on the 10 year Treasury note, also called the yield, reflects the demand for this type of government debt -- the more demand, the lower the yield. The lower the yield on the 10-year note, the lower fixed-interest mortgage interest rates are.

By issuing Treasury Bonds, Treasury affects you by influencing mortgage interest rates, which affects your ability to buy and sell your home, and to get equity loans. It also affects the value of the dollar, which impacts the cost of imports and inflation. Over the long haul, the declining dollar will erode your retirement savings to the point that you may have to keep working.

Learn more about Treasury, such as how you can buy Treasury bills directly from the Bureau of the Public Debt.