Do you agree or disagree with this quote?

Question

The Federal Reserve System is structured in such a way as to insulate monetary policy from the political pressures characteristic of the rest of our political system of representative democracy.”

Thank You!!!

Answer 1

dont understand it

Answer 2

That was the intention anyway.

Though considered an independent government agency, the Fed is still susceptable to political pressure. All of the appointees are generally 'politically friendly' with the white house.

Also, when Congress has a concern, they call the Fed chairman to the hill to 'discuss'. If Congress isn't satisfied, they may pass a law or two to make the Fed pay attention, or simply ensure the next appointee 'understands' Congressional wishes.

The most obvious and transparent example was Greenspan's endorsement of Bush tax cuts. The Republican Congress put a lot of pressure to get that. In Greenspan's book, that's one of his biggest regrets is endorsing the cuts that brought record deficits to the economy,