US and Japan join forces to tackle exchange rates. Japanese Finance Minister Katayama Gōgetsu stated that the government will coordinate with the US when necessary to continue addressing exchange rate fluctuations. This intervention by the Fed in the exchange rate finally completes the 'new Plaza Accord.' Looking at the historical trend of the US Dollar Index since its inception, after the signing of the Plaza Accord in 1985, the index plummeted, dropping to the 80s during Clinton's second term. Clinton's second term was also the most prosperous period in the US over the past 40 years, with rare consecutive fiscal surpluses. The booming economy also made 1998 the first time in nearly 40 years that the ruling party won the midterm elections (Bush in 2002 was the second time).