Journal Article

Policy Update: Independence, If You Can Keep It

Abstract: Historically, Congress has tended to take an acute interest in examining the structure of the Federal Reserve whenever there is economic turmoil. The economic swing during the COVID-19 pandemic and the current period of elevated inflation are no different. In response, lawmakers and policy influencers have voiced concerns about the Fed's ability to promote an equitable economic recovery as well as its ability to manage inflation. These proposals have spanned the political spectrum, including expanding the Fed's monetary policy mandate into new areas, bringing monetary policy decision-making under additional oversight, and replacing the current structure of the Fed entirely.

Keywords: central bank; independence; Federal Reserve; monetary policy; Congress;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Econ Focus

Publication Date: 2024-08-13

Volume: 24

Issue: 3Q

Pages: 13