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Economics

Federal Reserve Political Independence and Accountability

Quick fact

The Federal Reserve was intentionally designed to be independent from day-to-day politics. Its 14-year governor terms and protected funding make it one of the most independent central banks in the world.

Why this is interesting

Who runs the economy—elected officials or unaccountable bankers? If the president could order the Fed to lower interest rates before an election, inflation would likely soar. So why do we let a group of economists make decisions that affect everyone?