The past, present and future of Fed independence

Insights Now

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Within our financial system, the idea that the Federal Reserve should operate as an independent entity is fundamental. Importantly, the Federal Reserve is a political institution that is accountable to Congress, but also to the public, and its independence ensures it can conduct monetary policy in a way that it perceives to be in support of its dual mandate without undue political pressures. However, some candidates on the campaign trail have expressed interest in giving other branches of government a say in the Fed’s decision-making process, meaning that this election could have major implications for the ways in which monetary policy is conducted, its efficacy and the public’s confidence in the central bank.

To explore the implications of any changes to the Federal Reserve’s independence, Gabriela Santos is excited to be back with Dr. David Kelly, Chief Global Strategist here at J.P. Morgan Asset Management.

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