Fed independence is a question of power. And, as with many institutions today, President Trump is trying to reduce the Fed’s power and increase his own. That dramatic backdrop makes today’s Senate confirmation hearing on Stephen Miran’s nomination for Fed Governor anything but normal. The term “Fed independence” will be invoked repeatedly, but words are not enough. There is more to it, but at its core, Fed independence is about interest rates, the primary tool of monetary policy today. There are many questions we could ask: • Who should be in charge? Politicians or technocrats? That’s a question that goes back to the ... (full story)