Why is the federal reserve system important?

Answer 1

It is important for the Fed to be independent because much their open market operations (i.e. raising or powering short term interest rates) tend to be very politically charged. The effects of the operations have long lead time (up to six month or more) that don't lend themselves to the political whim.

AnswerThe activities of the Federal Reserve are not only independent of all government oversight, they are secret. This is important to the Federal Reserve because they have the power to cause economic chaos at will. If they were subject to government oversight they could not do this.

For this reason the Federal Reserve is unconstitutional and the people should demand that its charter be revoked.

Answer 2

Two reasons why the federal reserve board is given independence in establishing monetary policy are: one, there needs to be one standard board in regulation of monetary policy, and 2) the federal board exists to override the state boards.

Answer 3

The Federal Reserve is a bank that functions within the US government, and it answers to Congress. It is important because it regularly takes actions to regulate the US economy. It can have money printed if need be, or it can take money out of circulation.

Answer 4

• It removes politics from monetary policy decision making.

• Congress/the president can abdicate responsibility for difficult decisions by delegating decisionmaking power.

• The Federal Reserve Board relies on expertise when making decisions.

• The Federal Reserve Board makes economic policies efficiently.

Answer 5

the Fed regulates interest rates and availability of bank credit and sets other monetary policies such as legal reserve requirements for banks.

Answer 6

dept of the Treasury mandated that.