Does the Fed’s Job Performance Justify Its Independence?

Abstract

We examine the Fed's argument that its independence from political influence is justified because their decisions are "based on the best interests of the nation, not the interests of a small group of politicians."

The issue raised by the article is not the Fed's decisions, it is the Fed's performance and results of those decisions.

We argue that the Fed shifted its mission, in 1998, from domestic economic stability to stabilizing global financial conditions.

Their dismal economic performance must be viewed within the context of their effort to promote globalism, not create economic prosperity for common American citizens.