The board was created in response to the growth of Office of Policy Coordination covert activities during the Korean War.
President Truman broke the logjam on January 4, 1951, when he ordered Frederick Lawton and Sidney Souers to develop a plan for what would become PSB – an interdepartmental committee.
The Psychological Strategy Board (PSB) was set up to produce propaganda that would win the opinion of people around the world and prevent the spread of Communism.
[7] The PSB defined psychological warfare as any nonmilitary action which influenced public opinion or foreign policy interest.
This, therefore, includes, but is not limited to: trade and economic aid, cultural and educational exchange, threats to use force and diplomacy.
The most popular buzzword was 'containment' because it allowed U.S. officials to present their foreign policy objectives as "noble, restrained and fundamentally defensive.