Business
How Congress Built a Fed That Presidents Can’t Control
The Federal Reserve wasn’t built to be independent by accident. Congress designed it that way, with a series of structural checks meant to keep any single president from controlling monetary policy.
There are 12 reserve bank presidents who lead the Fed’s regional branches. They aren’t appointed by the president – they’re chosen by directors of regional bank boards, generally the heads of local businesses and nonprofits, subject to approval of the board of governors in Washington.
Then there’s the seven Fed governors, who are appointed by the president and confirmed by the Senate. Governors serve staggered 14-year terms, making it difficult for any single president to remake the board.
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