Trump, Lisa Cook and the Federal Reserve’s Independence

The central bank differs from other agencies in that the power to coin money belongs to Congress

By Phil Gramm and Jeb Hensarling. Excerpts:

"The Constitution gives Congress the power to coin money and regulate its value. Congress, in fulfilling that delegated responsibility, created the Federal Reserve. In carrying out narrowly defined monetary policy, the Fed isn’t subject to executive authority."

"Congress created a central bank with seven board members, or governors, appointed by the president and confirmed by the Senate."

"By involving itself in the political process, the Fed undercut the argument that it should be independent of that political process."

[Powell] "helped cause that inflation" 

"based on the argument that the inflation was the result of a supply shortfall and therefore transitory. That argument wasn’t credible given that the federal government was spending more in two years than it had ever spent in three and the Fed during the pandemic was expanding the money supply faster than in any other year since World War II ended."

"Her “for cause” firing appears to be another assault on monetary policy independence."

"in creating the Federal Reserve, Congress delegated an enumerated power that Article I, Section 8 of the Constitution had given it."

"the Founders concluded that the safest bet was for Congress to hold “the power to coin money and regulate its value thereof.”" 

"Congress . . . had no authority to delegate its enumerated power to the executive branch."

"the Fed is accountable to Congress in conducting monetary policy."

"But the Fed in conducting monetary policy isn’t an executive-branch agency. It is carrying out a function given by the Constitution to Congress."

"Presidential control of monetary policy would be a threat to financial stability and American prosperity."