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In: Economics

The Fed is the independent monetary authority for the USA. They control the money supply, interest...

The Fed is the independent monetary authority for the USA. They control the money supply, interest rates, and have big impacts on economic activity, the bond market, and inflation. Other nations have their "own" Fed. Discuss how the Fed is insulated form political pressure and how that insulation allows the Fed to do the best job possible. If there was independence and more political influence, then the Fed would be less effective.

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