Federal Reserve officials emphasize the institution’s independence from political influence as crucial for effective monetary policy. The central bank’s dual mandate of price stability and maximum employment requires long-term thinking beyond political cycles, according to recent statements.
Federal Reserve’s Structural Independence
Amid ongoing economic uncertainties and political pressures, Federal Reserve officials are reiterating the importance of the central bank’s independence, according to recent statements from San Francisco Fed President Mary Daly. Sources indicate this structural separation from direct political influence has been fundamental to the Federal Reserve‘s operations since its founding in 1913.