Making the Fed more accountable to Congress and the public may be just what it needs to fend off Trump’s threats to its independence

The Conversation reports that many Americans see the Federal Reserve as a big black box, with its decisions on interest rates and inflation largely hidden from public view. Former President Donald Trump has repeatedly pressed the Fed to cut rates and even tried to remove Governor Lisa Cook, which has intensified calls for stronger congressional and public oversight. In his opening remarks at the Jackson Hole conference, new Fed Chair Kevin Warsh faced questions about improving transparency, including proposals for regular Government Accountability Office audits of the central bank. The Fed’s balance sheet, which swelled to almost nine trillion dollars after the 2008 crisis, now sits at about six point seven trillion dollars, highlighting the scale of its post‑crisis actions. As Warsh begins his tenure, he must balance demands for accountability with preserving the independence needed to steer monetary policy.

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