THE FED’S “INDEPENDENCE” MYTH IS CRACKING — AND THE REAL POWER STRUGGLE IS JUST BEGINNING

The Establishment’s Favorite Word: “Independence” When Federal Reserve officials defend themselves, one word rises above all others: independence. Independence from politics. Independence from elections. Independence from short-term pressure. On its surface, that sounds reasonable. Monetary policy shouldn’t swing wildly with every campaign cycle. Stable currency requires discipline. But here’s the question few in Washington want asked plainly: Independent from whom — and accountable to whom? The Federal Reserve sets interest rates that determine: Mortgage affordability Credit card rates Small business expansion costs Treasury borrowing costs The valuation of retirement portfolios It regulates banks. It controls emergency liquidity. It expands and contracts its balance sheet in the trillions. And yet, its leadership is unelected and largely insulated from direct voter consequences.…