The Fed is institutionally independent. A major advantage of this is that monetary policy
A) is subject to regular congressional scrutiny.
B) will often offset fiscal policy.
C) is not controlled by politicians.
D) is usually coordinated with fiscal policy.

Question

Quizplus · Accepted Answer

The institutional independence of the Fed means that monetary policy is not controlled by politicians, which can help to insulate it from pressures related to short-term political considerations. This allows the Fed to focus on achieving its mandate of promoting price stability and maximum employment, rather than being subject to political interference.

The Fed Is Institutionally Independent