Share
Explore BrainMass

The Federal Reserve benefits

The Federal Reserve (The Fed) is probably the most independent government agency in the United States. Independence means that the Fed is free from presidential and congressional political pressures. Every few years, the question arises in Congress as to whether the independence of the Fed should be curtailed. Politicians who strongly oppose a Fed policy often want to bring it under their supervision in order to impose a policy more to their liking.

Should the Fed be independent, or would we be better off with a central bank under the control of the president or Congress?

Solution Preview

<br>Should the independency of the Federal Reserve (Fed) be maintained?
<br>-------------------------------------------------------------------
<br>
<br>The independency of the Fed has been a matter of great contention since passage of the Federal Reserve Act in 1913. Time and again, Congress and other individuals have argued that the Fed has too much independence and power and that it should be made more directly accountable to the U.S. Congress. It is also argued that Fed's structure is undemocratic since its members are not directly elected by the people.
<br>
<br>However, these criticisms are not well-founded since the Fed has been proven to be very ...

Solution Summary

Should the Federal Reserve be independent, or would we be better off with a central bank under the control of the president or Congress?

$2.19