Chairs of the federal reserve board

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Because the chairs of the Federal Reserve Board can have an enormous impact on policy decisions of the Fed and thereby the economy, their selection has been the subject of great political interest. Politically motivated monetary policy could be ruinous economic policy. Previous Fed chairs have understood their functional independence from congressional interference depends on the apolitical nature of their decisions. What would the economic consequences be if this balance was upset by a president who nominated a Fed chair dedicated to protecting the president's political party?

Reference no: EM132498179

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