The Fed's Relationship to the Executive Branch Is Already Closer Than It Seems
Much hand wringing has occurred recently about Federal Reserve independence. Fears former President Donald Trump might politicize the bank have heightened in the run-up to the election, while conservatives have accused the Fed of “playing politics” to help Democrats.
The Fed’s independence is an important feature of its design, but the bank isn’t truly isolated from the executive branch of government, writes Stephen Miran, former senior advisor at the U.S. Treasury, in an essay for Barron’s.
Miran, who is now a senior strategist at Hudson Bay Capital, particularly highlighted the close relationship between the Fed and the Treasury Department.