3 And it is worth remembering that the Federal Reserve is the nation’s third significant experiment with a central bank. 4 As the Federal Reserve nears its centennial, the Fed’s longevity should not allow our memories to fail us on its origin and the scope of its remit. Let me explain.
The grant of authority to the central bank is a considered judgment of the nation’s elected representatives. Central bankers are entrusted with a revocable privilege. So, declarations of independence by Fed policymakers are heartening. But independence is ours to demonstrate, not principally to declare. And central bankers err if they presume that independence is some inalienable right, some entitlement.