Should The Federal Reserve Play A Positive Role In The United States?

The Federal Reserve plays a positive role in the United States. This is because it is the central bank of the United States. According to the Board of Governors of the Federal Reserve System, the Federal Reserve’s balance sheet consists of about 8.7 trillion dollars as of May 2023. This shows the importance of the Federal Reserve System, as they need to manage trillions of dollars. They also lower interest rates when inflation is too high to keep the economy in a good position. The lowering of interest rates also promotes consumer spending. During an economic crisis, the Federal Reserve helps the economy by providing more employment. The Federal Reserve is an independent bank. This means it operates separately from Congress and the president, minimizing political influence and pressure. Overall, they use their power to promote economic growth. This is why the Federal Reserve can play a

The Federal Reserve plays a negative role in the United States. Since the Federal Reserve can operate without Congress or the president's approval, their accountability can be limited. This gives the Federal Reserve a large amount of authority, especially involving money supply. Since they control the money supply of the United States, this makes them a powerful bank in the United States. Their power gives them the ability to control a huge part of the government. Some may argue that due to their large amount of power, it is even deemed unconstitutional. According to Investopedia, they state that “However, some argue that such a delegation is fundamentally unconstitutional. Opponents of the Fed's independence also suggest that it is undemocratic to have an unelected agency, unaccountable to the US public, dictating monetary policy.” They can use their power to focus more on making a profit versus acting economically responsible as to what is best for the United States. This is why the Federal Reserve could play a negative role in the United