Critics of Fed independence argue

Question

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All three options are valid criticisms of Fed independence. Some argue that giving an unelected group of officials the power to control interest rates and money supply is undemocratic, as they may not be held accountable to the public. Others argue that despite the Fed's independence, it may still pursue policies that are not in the public's best interest or fail to respond adequately to economic conditions. Finally, critics argue that the Fed's independence may lead it to prioritize the interests of financial institutions over those of the public, given that the Fed is closely linked to these institutions.

Critics of Fed Independence Argue