Which characteristic of the Fed was NOT designed to help maintain the Fed's independence?
A) The Fed's actions are not subject to executive branch control. If the Fed chooses a course counter to what the president might wish, the president has no means to prevent it.
B) Fed Board members are elected but confirmed by the president and the Senate. Board members do not have to worry about pleasing an electorate once elected and confirmed.
C) Instead of going through the congressional appropriation process, the Fed's budget comes from its earnings on its open market operations.
D) Board members serve 14-year terms and cannot be reappointed. The board members do not have an incentive to please Congress and the president in hopes of being reappointed.

Question

Quizplus · Accepted Answer

Board members being elected but confirmed by the president and the Senate does not necessarily protect the Fed's independence. The president and the Senate could choose to confirm individuals who are more likely to follow political agendas, rather than prioritizing the Fed's independence.

Which Characteristic of the Fed Was NOT Designed to Help