The End of Fed Independence and Its Unpredictable Consequences for Market Volatility The notion that the Federal Reserve operates independently from Congress has been a cornerstone of America's monetary policy framework.
However, this independence is being reevaluated in light of recent developments, which have profound implications for market volatility and long term investors.
Understanding the End of Fed Independence Fed independence was established with the passage of the Federal Reserve Act in 1913, designed to provide a stable financial system by centralizing monetary policy under a single authority.