Why Is The Federal Reserve Independent

The Federal Reserve shouldn't be an independent entity, economist Art Laffer told CNBC's "Squawk Box" on Monday. Federal Reserve Association file Number 0042817 a delaware corporation; House Joint Resolution 192 HJR-192 Original Document basis for Accepted for Value A4V can’t pay for anything Discharge any Obligation; Independent Treasury Act of 1920 Establishment of Federal Reserve Association take over of U. The truth is that the Federal Reserve is about as “federal” as Federal Express is. Nov 05, 2018 · If you can't remember why the United States made the Federal Reserve independent, take a look at Venezuela. Bill Huizenga’s (R-MI) proposed Fed Oversight Modernization and Reform Act, which could make changes to the Federal Reserve’s structure and authority. The Federal Reserve System is subject to congressional oversight, however, and must work within the economic and financial policy framework and overall objectives of the U. The Federal Reserve System is the US's central bank. Put simply, the Fed is. of the Federal Reserve. The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years. Why is central bank independence so important, anyway? by Tracey Samuelson Jul 8, 2019. Why does the Federal Reserve fear a real audit? be percolating in Congress next week when the Senate Banking Committee starts considering proposals for reforming the Federal Reserve that she. Dependent vs. The Tyranny of the Federal Reserve [Brian O'Brien] on Amazon. Second, I show how the distinction between political and career appointees is less clear at the Fed than elsewhere. The federal reserve already does so much to manipulate the economy in the U. The reason most people don't express their individuality and actually deny it, is not fear of what prime ministers think of us or the head of the federal reserve, It's what their families and their friends down at the bar are going to think of them. As such, its members, once nominated by the president and confirmed by the Senate, serve whatever term is provided for in the statute creating the independent agency. The Federal Reserve has dismissed Donald Trump's call for a cut in interest rates to help the US economy. At the Federal Reserve Bank of Kansas City we have consistently found a strong correlation between overall bank health and the level of director engagement. The Federal Reserve System, which was established in 1913 to stabilize the country's financial system, includes 12 regional Federal Reserve banks, 25 Federal Reserve branch banks, all national banks, and some state banks. " This makes some people a bit suspicious about the Fed in general, and could be a reason why so many Americans. , is a seven-member board appointed by the president and confirmed by the Senate. THRIFT PLAN The Thrift Plan, which features several investment options with varying levels of risk, makes it easy for eligible employees to save money for retirement. Each Reserve Bank is organized like a corporation. The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Morgan Chase acquire Bear Stearns, lowering the discount rate and offering short-term loans to about 20 investment banks--and they came only days after the government said it would inject $200 billion into the financial system. This paper provides a more complete examination of early Fed history and the ultimate evolution of Fed independence with a. US Federal Reserve Chair Janet Yellen at a press conference in December, 2015. Why We Have An Independent Fed. An independent Federal Reserve can shield the economy from the political business cycle, and it will be less likely to have an inflationary bias to monetary policy. Poll: Is The Federal Reserve Doing A Good Job? - The Federal Reserve System has now been in place for about 100 years. Raising rates may be too tough on average American consumers already dealing with heavy debt loads. The Federal Reserve (the “Fed”) is the nation’s central bank. The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Its most important function is to manage the country's supply of money and credit. There are many critics of the Federal Reserve system and rightfully so, however the U. The Federal Reserve is an independent entity established by the Federal Reserve Act of 1913. Michael Klein, Tufts you should care a great deal if the Fed were to become less independent. Trump Is Right: The Federal Reserve Is Crazy And Here Are 101 Reasons Why It Should Be Shut Down Without a doubt, the Federal Reserve has created “the everything bubble”, and when it bursts the economic pain is going to be off the charts. But as CNNMoney's Christine Romans explains, the Central Bank was designed specifically to be independent from the branches of government. It controls or influences the interest rates that are paid on Americans’ savings and that they pay on car loans, mortgages and the like. Why the Federal Reserve Has Done More Harm Than Good. These agencies are generally headed by a commission or board made up of five to seven members. In response to the Great Recession in 2008, an independent Federal Reserve played its largest role yet in a financial crisis, the Great Recession. Bill Would Adjust Federal Reserve’s Structure, Give Congress Greater Authority Over It. Taking this into account, the federal government applies two different standards for students, one for dependent students and one for independent students. Federal Reserve Names Ken Montgomery Leader of Newly Announced FedNow SM Service for Real-Time Gross Settlement of Faster Payments. In fact, I think it would be hard to find a major financial imbalance in the US that the Fed did not have a hand in creating or, at least, enabling. The Federal Reserve System is an independent regulatory agency, that murky and unaccountable fourth branch of government. The Federal Reserve System consists of 12 independent banks that operate under the supervision of a federally appointed Board of Governors in Washington, D. 18) criticized a second round of quantitative easing (QE2) by the Federal Reserve. Black's Law Dictionary defines the "Federal Reserve System" as: "A Network of twelve central banks to which most national banks belong and to which state chartered banks may belong. Moreover, government is able to carry out long-term policies, i. Each bulletin provides an overview of a key supervisory topic, explains how supervisory staff typically address that topic, highlights related policies and guidance if applicable, and discusses examination expectations as appropriate at community banks. com for more stories. The STB is decisionally independent, although it is administratively affiliated with the Department of Transportation. When the Federal Reserve’s policymaking committee lowered is benchmark rate by a quarter percentage point on Wednesday, it demonstrated that it lacks the sway it used to have over the economy. As part of the nations central bank, the Federal Reserve Bank of Dallas is committed to strengthening the economy and our communities. Its principal mission is the promotion of consumer protection and the elimination and prevention of anticompetitive business practices, such as coercive monopoly. Why is it important to separate Federal Reserve monetary policy decisions from political influence? Policymakers, academics, and other informed observers around the world have reached broad consensus that the goals of monetary policy should be established by the political authorities, but the conduct of monetary policy in pursuit of those goals should be free from political influence. United States: "The Reserve Banks are not federal instrumentalities for purposes of the the Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations. Federal Reserve happened to have $85 billion lying around to bail out American International Group. The Importance of a Regional and Independent Federal Reserve. (See updates below, 2/13, 2/24, 6/12, 6/15, 7/27, 8/12, 9/8. Here’s an inside look. In fact, the Federal Reserve has argued vehemently in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act. The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years. For instance, in 2013 Germany wanted to take away its gold from the Federal Reserve System but the answer was negative. The federal reserve already does so much to manipulate the economy in the U. Peterson, Mr. System and how the Federal Reserve affects the economy is a mystery. Why is there only one District for the West Coast and more Districts toward the East and Midwest? The locations of Federal Reserve District boundaries, and of the Banks within the Districts, were determined mostly by the geographic distribution of the U. Why was the Federal Reserve System set up with 12 regional banks rather than one central bank as in other countries? Why was it made an independent quasi-governmental body and not a direct part of the. The independent contractor's work is not directly supervised by the client on a day-to-day basis. How is the Federal Reserve System structured? The Federal Reserve System was designed to give it a broad perspective on the economy and on economic activity in all parts of the nation. Q: What is the Federal Reserve and why is it so important? The Federal Reserve, known to admirers and detractors as “the Fed,” is an extremely powerful arm of the federal government. Federal Election Commission (FEC) – The mission of this independent federal regulatory agency is to administer and enforce the Federal Election Campaign Act, which governs the financing of federal elections. Benjamin Strong of Banker’s Trust was the first Governor of the New York Federal Reserve Bank. Oct 19, 2017 · The Fed Claims to Be Independent. But many individuals may not know why the bill is issued by the Federal Reserve and what role the Federal Reserve plays in the economy. The Federal Reserve sent Wells Fargo & Co. Why We Have An Independent Fed. By Thomas F. banking system's regulatory apparatus is complex; the authority of the Federal Reserve is shared in some instances—for example, in mergers or the examination of banks—with other federal agencies such as the Comptroller of the Currency and the Federal Deposit Insurance Corporation (FDIC). Independent experts at Federal Reserve disagree with Trump’s predictions of strong economic growth Not to worry — if Trump and his followers’ sky-high hopes fall short, they can always just. Why did the Federal Reserve Devalue the U. As you will see below, there are a ton of good reasons why we should nationalize the Federal Reserve. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. faces and again criticizing the independent central bank for raising interest rates. If a bank does not have enough cash to satisfy its reserve requirement at the end of the day, they need to make loans from other banks, or the Federal Reserve itself, and deposit the borrowed money. By Thomas F. These are often called independent agencies, since they are not part of the executive departments. The Fed was set up that way to immunize them from the fickle winds of partisanship. As you look at that dollar bill, I want you to notice that it says “Federal Reserve Note” right at the top. Moreover, government is able to carry out long-term policies, i. Herman Cain, whom President Donald Trump is recommending to the Federal Reserve Board, has sent numerous sponsored emails to his mailing list promoting penny stocks that are now virtually. The country should abolish the "Federal Reserve System", print its own currency and pay back the debt with the new currency. , has condensed into this Monograph the substance of addresses he has given to small groups that represent a cross-section of American citizens concerned with fundamental monetary and banking reform. The Federal Reserve (the Fed)—the United States’ version of a Central Bank—is a strange duck. Federal Reserve Act Signed by President Wilson December 23, 1913. The Federal Reserve Bank of Kansas City is one of 12 regional Reserve Banks that, along with the Board of Governors in Washington, D. It was established by an Act of Congress in 1913 and consists of the Board of Governors in Washington, D. As a quasi-independent institution that is. The Federal Reserve is the central bank of the United States. Browse The Independent’s complete collection of articles and commentary on Federal Reserve. Neal, the Chair of the House Subcommittee on Domestic Monetary Policy in 1991, stated that "Congress plays no direct role in setting or authorizing the Fed's budget. The Federal Reserve System, which was established in 1913 to stabilize the country's financial system, includes 12 regional Federal Reserve banks, 25 Federal Reserve branch banks, all national banks, and some state banks. Its principal mission is the promotion of consumer protection and the elimination and prevention of anticompetitive business practices, such as coercive monopoly. Mester 2017 Policy Summit on Housing, Human Capital, and Inequality, Cleveland, OH. If a bank does not have enough cash to satisfy its reserve requirement at the end of the day, they need to make loans from other banks, or the Federal Reserve itself, and deposit the borrowed money. I don’t feel that about the country obviously but if that’s the case why does this same Federal Reserve argue for letting the financial markets free of government supervision, which is what. President Donald Trump has nominated two political allies to the Federal Reserve Board, raising concerns about independence at what's seen as the most powerful central bank in the world. The Federal Trade Commission (FTC) is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act. has the power to regulate and control the Reserve. ” It seems absolutely ludicrous that Congress would want entrust more powers to the Federal Reserve, an “independent agency” that is not answerable to Congress. The Federal Reserve (The Fed) is probably the most independent government agency in the United States. The Federal Reserve System (called the Fed, for short) is the nation's central bank. The effectiveness of the Federal Reserve as a central bank was put to the test on September 11, 2001 as the terrorist attacks on New York, Washington and Pennsylvania disrupted U. ITX measures the unit’s ability to provide a cohesive, trained, and ready capability in support of service and Combatant Commander requirements. The US central bank, a system of 12 Federal Reserve banks, each serving member commercial banks in its own district. The Federal Reserve system is an imperfect, but rather innovative clearinghouse. Delegating monetary policy to an independent body was a sound idea, and the Federal Reserve's independence has become a model of central bank governance around the world. The Federal Reserve (the “Fed”) is the nation’s central bank. But many individuals may not know why the bill is issued by the Federal Reserve and what role the Federal Reserve plays in the economy. Why should the Federal Reserve Board and the Federal Reserve banks be permitted to finance our competitors in all parts of the world?" Rep. Acting Consumer Financial Protection Bureau Director Mick Mulvaney has requested "zero" funding from the Federal Reserve in the second quarter and instead will use reserves to fund the agency. 1, 1996? Y N As of today, are you married? (Also answer "Yes" if you are separated but not divorced. Why Federal Reserve Independence Matters A 2016 study found a strong correlation between countries with low inflation and more independent central banks. Two financial experts on Fox News couldn’t figure out why President Donald Trump was lashing out at the Federal Reserve chairman on Friday. Trump Is Right: The Federal Reserve Is Crazy And Here Are 101 Reasons Why It Should Be Shut Down Without a doubt, the Federal Reserve has created “the everything bubble”, and when it bursts the economic pain is going to be off the charts. bill has the words “Federal Reserve Note” imprinted across the top. This low unemployment rate is largely possible because of policy decisions by the Federal Reserve Board. Common Myths About the Federal Reserve Few institutions invoke more emotion and mythology than global central banks. AP® UNITED STATES GOVERNMENT AND POLITICS 2008 SCORING GUIDELINES Question 3 (continued) Part (e): 2 points One point is earned for each of two explanations of why the Federal Reserve Board is given independence. government, that controls the movement of money throughout American finance. The House of Representatives this afternoon voted on a bipartisan basis for Rep. The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America. Imagine you're high school freshman and got a school assignment about the Federal Reserve. View Homework Help - ECO 13 from EC 2013 at Broward College. The Federal Reserve Bank is a group of interrelated private corporations, independent from (but entirely enmeshed in) the U. " "I don't see any reason why we should. The Federal Reserve doesn't print money. In order to better understand the Federal Reserve's role as an independent institution that is accountable to the public it serves, the Federal Reserve Bank of Kansas City's Board of Directors requested an in-depth examination of the political pressures the central bank has faced throughout its history. The Tyranny of the Federal Reserve - Kindle edition by Brian O'Brien. The Federal Reserve System, created with the enactment of the Federal Reserve Act on December 23, 1913, is the central banking system of the United States. Here’s why. Specifically, we study the impact of cash-back rewards on individuals before and during their enrollment in the program. Amid reports he has asked advisers if he is allowed to fire the chair of the Federal Reserve, Donald Trump tweeted on Monday that the central bank is “the only problem our economy has” because. By Thomas F. It was founded by the U. Here’s an inside look. Why is the Fed's independence so important? One reason is the control of inflation. The Federal Reserve voted unanimously Friday to impose an unprecedented enforcement action against Wells Fargo in response to its phony-accounts scandal as the bank said it would remove four members of its board. One can almost feel the collective gasp for oxygen in Washington as the defenders of the. Web of Debt is a page-turner that explains the origin of the Federal Reserve, the functioning of our money supply, currency speculation, capital flows, and the rest. As a quasi-independent institution that is. "I place economy among the first and most important virtues, and public debt as the greatest of dangers. Donald Kohn discusses whether the Federal Reserve, in a post-financial crisis regulatory and policy-making environment, will continue to be granted independence in acting in financial markets and. Why does the Federal Reserve fear a real audit? be percolating in Congress next week when the Senate Banking Committee starts considering proposals for reforming the Federal Reserve that she. The Federal Reserve system is an imperfect, but rather innovative clearinghouse. The Federal Reserve (The Fed) is probably the most independent government agency in the United States. Methodology for collection of mobile service coverage data. central bank's decision to raise interest rates last week, has talked about ousting Federal Reserve Chairman Jerome Powell, according to a. Statement to Congress: Oppose Proposals To End Independent Federal Reserve Funding Submitted by admin on January 10, 2018 - 12:30 pm AFR sent a statement to the House Financial Services Committee regarding proposals to end independent funding for Federal Reserve bank regulation and supervision. It is considered an independent central bank because its decisions do not. For example, some of these federal benefits may be used to pay delinquent federal taxes or student loans. It is necessary to point to the Fed’s actions to understand tremors in world markets, but. On Wednesday, the Federal Reserve’s Jerome Powell was asked about his latest thoughts on Bitcoin (), crypto assets, and Libra. Well, you gave your reasons to end the Federal Reserve, so, allow me to put up a few reasons WHY YOU SHOULDN'T END the FEDERAL RESERVE Now, these reasons are not in any particular order, and perhaps, they could stand as equally important. government, that controls the movement of money throughout American finance. The Federal Reserve's independence is dangerous, undemocratic, and a boon to Wall Street November 19, 2014 For Janet Yellen, throwing your hands up isn't good enough. Federal reserve banks are not federal instrumentalities for purposes of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors, federal reserve banks, though heavily regulated, are locally controlled. The Federal Reserve doesn't print money. The Federal Reserve is the independent central bank established by Congress in 1913. Fed-in-Print is the central catalog of publications within the Federal Reserve System. or Federal Reserve System n. Federal Reserve Chairman Jerome Powell's "60 Minutes" interview where he gives his view on whether or not President Trump can fire him and outlines the current risks to the U. But many individuals may not know why the bill is issued by the Federal Reserve and what role the Federal Reserve plays in the economy. WASHINGTON (AP) — Not since America's financial system and economy appeared to be in grave danger — back in December 2008 — has the Federal Reserve cut its benchmark interest. Even before Ron Paul’s rallying cry of “End The Fed” shook America during the peak of the Tea Party movement, I was a huge advocate of shutting down the Federal Reserve. That is certainly long enough to evaluate how well it has performed. Before the Federal Reserve was created in 1913, there were over 30,000 different currencies floating around in the United States. MAXIMUS Federal delivers a wide range of innovative enterprise technology services to support the most complex federal programs. The Federal Reserve (The Fed) is probably the most independent government agency in the United States. Watch the documentary 'The Creature From The Black Lagoon' (available for free on YouTube) for facts on the Federal Reserve Act and how/why the Federal Reserve was started. I'm considering a more important, fundamental reason why the "banishment" of the Federal Reserve doesn't really matter in the least. The reading portion of the lesson can be found here: History of Italian Banking Warlord Bankers and the Federal Reserve…. faces and again criticizing the independent central bank for raising interest rates. Globalization Institute. Martinez). They have possessed this authority for over a decade. But as long as the Fed remains independent and sticks with its 2% inflation target, it seems. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. Lowering rates could keep the bull market and Trump’s economic “rocket ship” going, but that would give the central bank less room to act in the event of a recession. Federal Reserve System. of the Federal Reserve. The Federal Reserve, often referred to as the Fed, is the country’s central bank. He will certainly do the former and. Criticism has reached such levels that Congressman Ron Paul, contender for the Republican presidential nomination in 2012, published End the Fed, with blurbs from musician Arlo Guthrie and actor Vince Vaughn. , and a decentralized network of 12 Federal Reserve Banks located throughout the country. It is self-financed and therefore is not subject to the congressional budgetary process. Federal Reserve staff indicated that these activities provide the Federal Reserve with sufficient revenue to enable it to provide ubiquitous access at affordable prices. THRIFT PLAN The Thrift Plan, which features several investment options with varying levels of risk, makes it easy for eligible employees to save money for retirement. Shifting Scales; Body Politic; Site Feedback; Support Oyez & LII; LII Supreme Court Resources; Justia Supreme Court Center. Delegating monetary policy to an independent body was a sound idea, and the Federal Reserve’s independence has become a model of central bank governance around the world. For example, some of these federal benefits may be used to pay delinquent federal taxes or student loans. Neal, the Chair of the House Subcommittee on Domestic Monetary Policy in 1991, stated that "Congress plays no direct role in setting or authorizing the Fed's budget. And THIS is why you need to work WITH me, as I'm apparently the only. But these guys read the. In this chapter, I explain why the Federal Reserve System is an important institution to study when examining administrative legitimacy. The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress. Why We Have An Independent Fed. “I never said the Federal Reserve was independent,” he told a stunned audience in October of 2014. The properties ascribed to it, from secretiveness, special interests and power to control the economy strike me as almost certainly inevitable consequences in the world of man. But many individuals may not know why the bill is issued by the Federal Reserve and what role the Federal Reserve plays in the economy. Chabot, Mr. 3 things to watch for from the Federal Reserve on Wednesday question for Powell of whether the criticism could eventually undermine confidence that the Fed will remain politically independent. The Federal Reserve System is the central banking system of the United States. Should we abolish the Federal Reserve? Millions of Americans assume the Fed acts in the nation's best interest and that our nation has always had a Fed. She wrote a book about the most stupefying subject in the world - money, where it comes from and how it is manipulated - and made it readable, compelling, even suspenseful. The 12 banks are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Photo credit: Day Donaldson As pundits debate whether the US Federal Reserve will raise interest rates again this summer or fall, we are reminded of just how much of the economy's direction hinges on central bankers' decisions. Because the authors of the 1913 legislation that set up the Federal Reserve System felt that it was vital to insulate monetary policy from "undue" pressure and influence by partisan politicians obsessed with their own short-range re-election prospects, the Federal Reserve was set up along the lines of an independent regulatory commission -- not. United States: "The Reserve Banks are not federal instrumentalities for purposes of the the Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations. Federal Emergency Management Agency Federal Disaster Assistance. 4 Federal Reserve Banks The Federal Reserve’s Thrift Plan (a 401(k) plan) and Retirement Plan are designed to help employees save for retirement and reach their financial goals. foreign policy and defense policy. Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee. The Federal Reserve System, sometimes known as the Fed, is the central bank of the United States. The Chair and other staff testify before Congress, and the Board submits an extensive report—the Monetary Policy Report—on recent. If central bank does not do a good job, such as the U. It was created by Congress in 1913 to ensure that the public retained confidence in its money and the financial institutions where it is held. Dollar to 5 Cents? September 6th, 2009 • Related • Filed Under • by admin The Federal Reserve took control over the United States money supply in 1913. - Analysts say Fed to indulge a market betting on two 2019 rate cuts. ) Five of the most important appointments Donald Trump will make during his first year in office will be to fill three vacancies on the Federal Reserve Board, to reappoint or replace Janet Yellen as Federal Reserve Board Chair, and to designate one of the Board members as Vice Chair for. Each of these banks works within a specific district, as shown. The Budget of the Federal Reserve and Other Oversight The budget of the Federal Reserve system is determined by each Bank and the Board of Governors. President Trump broke with a longstanding tradition of presidents not commenting on monetary policy on Thursday when said he's "not thrilled" with the Federal Reserve for raising interest rates. As part of the nations central bank, the Federal Reserve Bank of Dallas is committed to strengthening the economy and our communities. The combined public and private structure of the Federal Reserve. Federal Reserve Cuts Rates Amid Signs Of Slowing Global Economy WIth some signs pointing to a slowing global economy, and President Trump applying political pressure, the Federal Reserve reversed. Marine Corps photo illustration by Sgt. The Federal Reserve System, which was established in 1913 to stabilize the country's financial system, includes 12 regional Federal Reserve banks, 25 Federal Reserve branch banks, all national banks, and some state banks. Greenspan waited eight years after leaving The Fed to make that startling admission. The Federal Reserve System is the US’s central bank. Last fall, the president told reporters, After all, the Fed is an independent agency, which is. Feb 26, 2015 · Why does the Federal Reserve fear a real audit? be percolating in Congress next week when the Senate Banking Committee starts considering proposals for reforming the Federal Reserve that she. The Federal Reserve's structure is unique within the US bureaucratic system. com makes available to the viewer a variety of independent sources. The comments follow Mr Trump's attacks on the bank last week, after. Dependent vs. By Thomas F. This means that although the president selects members of the federal reserve and they have to be ratified by the. The reason most people don't express their individuality and actually deny it, is not fear of what prime ministers think of us or the head of the federal reserve, It's what their families and their friends down at the bar are going to think of them. Cooley A strange coalition of conservatives and liberals has joined forces in attacking the independence of the Federal Reserve System. The Federal Reserve: History of Lies, Thievery, and Deceit. The Federal Reserve's Mandate is much too large and important to be subject to the petty inconsistencies of democracy and volatility of US politics. The Federal Reserve, also informally known as the Fed, is the central banking system of the US that was instituted by Congress on December 23, 1913, with the Federal Reserve Act signed into law by President Woodrow Wilson to provide the country with a safer, more stable and more flexible financial and monetary system. government, that controls the movement of money throughout American finance. Be aware the privacy policy of the site to which you are going may differ from that of Independent Bank. As the nation's central bank, the Federal Reserve derives its authority from the U. To keep the institution insulated from short-term political pressures, it was made an independent entity within government. Just think of what would have happened to global financial markets during this last election cycle if either candidate had an ounce of influence. This is always a strange notion for me because, at its most basic level, the Federal Reserve is actually a very boring entity.