No, the Fed Is NOT Independent--It Is a Creature of Congress

Yeva Nersisyan and L. Randall Wray

Economics Policy Note Archive from Levy Economics Institute

Abstract: In response to President Trump's attack on the Federal Reserve, the natural critics of misguided monetary policy find themselves defending the Fed and the notion that the Fed is--and must be--independent. In a recent interview, Senator Elizabeth Warren began by admitting, "I completely disagreed with Chair Powell since he was first nominated by Donald Trump, that's how far back he goes. I have disagreed with him on regulatory policy. I think he's way too easy on the banks. And I have disagreed with him on interest rate policy. I thought he should have lowered interest rates two years ago, and I have said so quite vocally and done my best to persuade him." But she then went on to insist "I have never, ever questioned the independence of the Fed and the Fed's ultimate power to make those decisions based on their best judgment of what's good for the United States of America" (Inskeep 2025).

Date: 2025-09
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.levyinstitute.org/wp-content/uploads/2025/09/pn_25_7.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lev:levypn:25-7

Access Statistics for this paper

More papers in Economics Policy Note Archive from Levy Economics Institute
Bibliographic data for series maintained by Lindsey Carter ().