Why Is The Federal Reserve Board Independent? The primary justification for an independent Federal Reserve is the need to insulate it from short-term political pressures. Without a degree of autonomy, the Fed could be influenced by election-focused politicians into enacting an excessively expansionary monetary policy to lower unemployment in the short-term. Is the Federal Reserve
How Is The Government A Consumer Of The Economy? Consuming Goods and Services The government buys most of its goods and services directly from private businesses. The government is the largest consumer of goods and services. Does the government act as a producer and a consumer? A producer is someone who creates and supplies goods
How Does The Fed Remain Independent Of Political Pressures? The monetary decisions of the Federal Reserve do not have to be ratified by the President (or anyone else in the Executive Branch). The Fed receives no funding from Congress, and the members of the Board of Governors, who are appointed, serve 14-year terms. How is