Who is more powerful to the economy the Chair of the Federal Reserve Board or the President of the U.S.?
- NGC6205Lv 78 years agoFavorite Answer
The Federal Reserve implements monetary policy which has a significant impact on the economy depending upon how other factors in the economy respond. Congress sets fiscal policy which also has a significant effect on the economy. The Office of the President prepares a budget for a fiscal year and Congress modifies and approves the budget. The President appoints the members of the Federal Reserve Board of Governors which are then confirmed by the Senate just like many other high-ranking federal positions.
12 USC § 241 states -
[QUOTE]The Board of Governors of the Federal Reserve System (hereinafter referred to as the “Board”) shall be composed of seven members, to be appointed by the President, by and with the advice and consent of the Senate, after August 23, 1935, for terms of fourteen years except as hereinafter provided, but each appointive member of the Federal Reserve Board in office on such date shall continue to serve as a member of the Board until February 1, 1936, and the Secretary of the Treasury and the Comptroller of the Currency shall continue to serve as members of the Board until February 1, 1936. In selecting the members of the Board, not more than one of whom shall be selected from any one Federal Reserve district, the President shall have due regard to a fair representation of the financial, agricultural, industrial, and commercial interests, and geographical divisions of the country. The members of the Board shall devote their entire time to the business of the Board and shall each receive basic compensation at the rate of $15,000 per annum, payable monthly, together with actual necessary traveling expenses. [END QUOTE]
Where does it state in there that the bankers select the Chairman of the Board of Governors of the Federal Reserve? The answer is that it doesn't.Source(s): Reality The law
- Anonymous8 years ago
I would go for the FED chairman. The President nominated the FED chairman, but he knows nothing about the economy. Since the administration and the FED have to work independently, the FED can do what it wants.However, it is supposed not to work for the benefit of any political party,because the FED chairman will be there longer than the President.I know even the FED chairman will get audited by the Congress.
- Spotty JLv 78 years ago
Probably the President, but only in the long-term. A Fed Chairman has more impact in the short term, but none in the long run. A President can't do much in the short term, but can enact policies and set precedents that make big differences years and years down the road.
- Anonymous8 years ago
President. The Fed controls monetary policy, but its head can be replaced by President.
President controls Fiscal policy, cannot be replaced by Fed, and can pass laws with profound effect on economy.
- How do you think about the answers? You can sign in to vote the answer.
- matt hLv 48 years ago
easily the fed chairman, and btw, the President doesnt get to select the fed chairman, only gets to approve/disapprove the person nominated by the bankers