The Federal Reserve’s power and independence are often cited as positives, but the reality is that these traits can be a recipe for disaster. Rather than relying on politicians or technocrats to make decisions, the Fed’s boardroom is filled with an unelected group of economists and bankers who have the power to shape our economy.
Eight times a year, this group makes key decisions that affect millions of Americans, including mortgage rates, government debt purchases, and bailout decisions. If they succeed, the economy thrives, with low inflation and high employment. But if they fail, disaster can strike, with soaring inflation or rising unemployment.
The problem is not the Fed’s independence, but rather its lack of accountability. As a result, the public often fails to hold them accountable when things go wrong. Instead, we’re told that the Fed is “human” and “merely making mistakes.” However, with great power comes great responsibility, and it’s time for the Fed to take ownership of its decisions.
The current system is broken, and it’s up to policymakers to address this issue. By implementing reforms that promote greater transparency and accountability, we can ensure that the Fed is working in our best interests, not just their own. The time for change is now.
Source: https://www.bloomberg.com/news/articles/2025-05-13/trump-is-beating-up-on-the-federal-reserve-for-the-wrong-reasons