Research and experience show that Federal Reserve independence is essential to fulfilling the congressional mandate of price stability and maximum employment, …. The Fed consisted of 12 Regional Federal Reserve Banks and a central Board of Governors appointed by the President. Another was the Secretary of Treasury was removed from the Board, solidifying the independence of the FED from the federal government. By those actions, the Fed was able to manipulate interest rates --- and that manipulation has become the major tool by which the Fed engages in monetary policy. For details, see interest rates and inflation rates between 2009 and 2020.

Source: New York Times January 23, 2026 20:55 UTC