In June 2019, President Trump was frustrated that the FOMC had decided not to immediately reduce its target for the federal funds rate. On Twitter, he wrote that “the Fed doesn’t know what it is doing” and “we need rate cuts, & easing.” An article in the Wall Street Journal noted that “the Fed operates independently of the White House, and until last year, presidents over the previous 25 years refrained from commenting on rate decisions.” 

a. How is the Fed able to operate independently of the president in a way that, for example, the U.S. State Department or the Environmental Protection Agency can’t? 

b. Why have presidents typically not commented on the Fed’s decisions to raise or lower its target for the federal funds rate? 

c. Should the president have a greater role in determining monetary policy? Briefly explain.