Federal Reserve System
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ECONOMICS
Monetary Policy
Federal Reserve System
The Federal Reserve’s independence shields economic decisions from political swings, shaping U.S. financial stability.
5 days ago
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Why is the Federal Reserve System designed to be independent from direct political control?
Because it is a private bank owned by commercial banks with no government involvement.
To ensure it receives funding directly from Congress for its operations.
To allow it to make monetary policy decisions that stabilize the economy without political interference.
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