How Independent is the Fed? Do you think the Fed should be independent?

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Expert Solution

FED is independent but not completely. It is controlled by the U.S Congress to some extent so it can't be said to complete independent body.

The combined structure of FED is highly debatable at times .The monetary policies of the FED are not to be approved by the President and it receives no funding from the Congress and Governers have a 14 year term which also doesn't coinside with presidential terms which means they have a higher independence.

However, The Federal Reserve is subject to be regularised by the Congress as it needs to submit a semi annual report to congress.

I think the FED should be completely independent as that will help avoid any economic chaos and agressive monetary easing to please the crowds as politicians want to win elections by favouring different groups by influencing fed in making decisions which are biased.

An independent FED will help in keeping the economy on track and avoid any avoidable economic chaos.

jeff jeffy answered 1 year ago

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Question

How Independent is the Fed? Do you think the Fed should be independent?

Solutions

Expert Solution

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