“The Fourth Turning and the Federal Reserve: Significant change is likely coming to the Federal Reserve (Fed). A major reevaluation of its role in the U.S. economy is likely if any of the cited candidates for new Fed Chairman have their way. While it’s generally accepted that monetary policy needs to be “independent” of outside pressure to control inflation, it’s also true that Congress has the ultimate authority over the central bank and the Fed’s independence does not mean it’s unaccountable to the public and its legislative overseers. In particular, the Fed’s inability to meet its primary inflation mandate over the past five years and its increasing “mission creep” into areas separate from its traditional role have made it susceptible, according to many traditionalists, to fundamental reforms that are likely coming over the next few years.”
Morten W. Langer
