FRB Governor Jerome Powell Discusses Structure of Federal Reserve System
Federal Reserve System ("FRB") Governor Jerome Powell described the history of the central bank, and explained that the unique structure of the FRB is a "compromise" that was designed to balance national and regional interests. In his remarks before the West Virginia University College of Business and Economics, Mr. Powell said that even though some have called for reforming it, the Federal Reserve's structure provides a "practical balance" that allows the Federal Reserve to continue to fulfill its mission.
Commentary
While primarily a historical overview, Mr. Powell's speech also comes at a time when the structure and independence of the Fed (and other "independent" governmental institutions) has increasingly come under political fire. Mr. Powell notes that this debate is not new, but argues that "both the existence and structure of the Federal Reserve are products of . . . historical experience."