The Federal Reserve System is responsible for establishing monetary policy. It has a significant degree of independence from the executive, legislative and judicial branches of government. Its policymakers, the seven-member Board of Governors, serve 14 year terms with one member appointed every two years. There are 12 Federal Reserve District Banks spread around the county rather than one central bank in Washington, D.C. to carry out the policies established by the Board of Governors.
Why do you think the Fed was set up in this manner? Do you think that it is a good system for establishing and carrying out monetary policy in the country? Some politicians have suggested that the executive and/or the legislative branches of government should have more say or influence regarding monetary policy. In your opinion, would this be a good idea or not? Explain.