The End of Fed Independence: How It Affects Your Investment Strategy The Federal Reserve's independence is facing unprecedented scrutiny following the 2020 passage of the Congressional Review Act, which allowed Congress to override Fed rules and policies.
This shift in dynamic raises fundamental questions about the role of the Fed in managing inflation, interest rates, and ultimately, market trends.
Understanding Federal Reserve Independence and Its Impact on Markets The concept of Federal Reserve independence dates back to 1935, when Congress granted the central bank broad autonomy to set monetary policy.