To say that the Fed has some independence means that it
A)accepts deposits from whomever it desires
B)can ignore the macroeconomic goals of the United States
C)can adopt policies without the approval of the Congress and the president
D)is a private commercial bank
E)does not have to report its monetary policy to Congress

Question

Quizplus · Accepted Answer

The Federal Reserve has independence in the sense that it can adopt policies without the approval of Congress and the President. This allows the Fed to focus on its mandated goals (such as price stability, full employment, and low inflation) without being swayed by political pressures. However, the Fed still has to report its monetary policy to Congress and face scrutiny from elected officials.

To Say That the Fed Has Some Independence Means That