Those who support Fed independence do so mainly on the grounds that anything less than full independence will

Question

Quizplus · Accepted Answer

Those who support Fed independence believe that injecting politics into the monetary policy operations may lead to short-term political wins at the expense of long-term economic stability. Therefore, full independence is necessary to ensure that monetary policy decisions are based solely on economic considerations rather than political considerations. The Constitution and National Banking Act are not the primary reasons for supporting Fed independence.

Those Who Support Fed Independence Do So Mainly on the Grounds