Fed Chair Powell (Q&A) says Fed independence is the law; we've had to go to Court to defend it; law creates a setting where the Fed can set policy without political factors
Importance
Level 1
- There is a boundary line between the Fed and Treasury, these boundaries must be respected
- It's more than just monpol, Fed doesn't want to use tools to achieve goals outside of its mandate
- Fed has resisted administrations wanting to use tools for other purposes
- Fed independence is at risk; we have had to resort to courts to enforce the Fed's ability to set policy without political implications; we have been successful so far, but it is not over yet