Should the Fed be independent The Federal Reserve System has

Should the Fed be independent?

The Federal Reserve System has a large measure of political independence. The Board of Governors, appointed by the US president and confirmed by the US Senate, serve 14 year terms. In addition, the Federal Open Market Committee includes representatives of private banks in the Federal Reserve System.

Proposed: The public should directly elect some of the representatives who make monetary policy (as the public elects representatives who make fiscal policy).

Identify two strong arguments in favor this proposal.

Identify two strong arguments against this proposal.

Solution

Arguments in favor of the proposal:
The first argument is that elected representatives will be independent of the undue pressure from the political parties and they will make policies, independent of the political agenda.
The second argument is that elected representatives will bring balance between the public welfare and economic growth and they will be answerable to the people.

Arguments against the proposal:
The first argument is that the work of these representatives or officials are highly specialized and right person may not be the popular person among the people. So, there is a high probability that incompetent person will be selected for the job. It can be observed as ministers in government, has a team of experts to support in making policies and decisions.
The second argument is that an elected representative will only take care of those people who have given votes and policy will exclusively favor a particular class or state, rather a whole economy.