Understanding Political Pressures, Monetary Policy, and the Independence of the Federal Reserve in the United States From 1960-2019

Abstract

This longitudinal study analyzes the political pressures, monetary policy, and the independence of the Federal Reserve in the United States over the period 1960-2019. In order to fully appreciate the operations of the Fed during this period, a brief history of the banking system of the United States is made from its inception to the present. The analysis accounts for the various economic factors that have transpired in the United States while examining the various personalities who have been President of the United States and Chair of the Federal Reserve. This study demonstrates that political influences have long influenced the monetary system and have had and continues to have an impact on the independence of the Federal Reserve