Later, as chairman of the Export-Import Bank after World War II, he traveled to the Soviet Union to facilitate the transfer of war materials as part of the lend-lease program. As president of the Exchange, Martin was naturally a defender of free enterprise.

In 1938 at the age of 31, he became president of the New York Stock Exchange. Martin embodied the ideals of integrity and devotion to public service. When Martin became chairman in 1951, he brought with him important personal qualities and beliefs that subsequently shaped the character of the Fed. Evidence of an inflation premium in bond rates would be evidence that markets were skeptical that the Fed would implement its lean-against-the-wind procedures in a way disciplined by the long-term objective of price stability. The FOMC could then monitor its credibility with the bond markets. With this practice, termed “bills only,” it allowed market forces to determine long-term government bond rates. In setting short-term interest rates (conditions in the money market), the FOMC engaged in open-market purchases exclusively in Treasury bills. That policy, which was aimed at macroeconomic stability, contrasted with the pre-World War II policy, which focused on preventing speculation presumed to create unsustainable asset bubbles. In a policy Martin termed “lean against the wind,” the FOMC moved short-term interest rates in a way that countered unsustainable strength or weakness in economic activity. During this period, the Fed used the independence gained with the Treasury-Fed Accord to create a new kind of monetary regime. Only toward the end of the 1960s did inflation rise. Low and stable inflation along with generally robust growth characterized most of his tenure. was chairman of the Board of Governors and the Federal Open Market Committee from April 1951 until January 1970.

The Federal Reserve by Robert L. Hetzel