The main argument for Federal Reserve independence is that monetary policy-which affects inflation, employment, growth, and exchange rates-is too important to be determined by politicians.

Question

Quizplus · Accepted Answer

The main argument for Federal Reserve independence is indeed that monetary policy decisions, which have significant impacts on inflation, employment, economic growth, and exchange rates, should be insulated from political pressures to ensure they are made based on economic considerations rather than political expediency.

The Main Argument for Federal Reserve Independence Is That Monetary