Central banks were set up for independent banking functions, on the premise it’s best for a country to keep its financial system from political influences.
Politicians have always had a tendency to produce financial and economic pressure to change any banking independence during stressful economic times.
How are major central banks doing with regard to their current national financial crises?
The Bank of England has been relatively independent but rather involved with its government bond market. The Bank of Japan has been somewhat independent since 1998 but it often has been politically directed.
Congress, which always loosely supervised the Fed now wants audits and more disclosure, which would exert pressure. However, the Dodd-Frank Act now has the Fed go more deeply into the American economy than it had before, and the present Fed Chairrnan, Ben Bernanke, has had a tendency to lean more to administration policy.
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