Former Fed official challenges central bank independence. Randal Quarles, ex-Vice Chair for Supervision, argues that Federal Reserve board members should serve at the president's pleasure rather than having removal protections. However, he contends the Fed's decentralized structure would still insulate monetary policy from short-term political pressure. His comments arrive as the Supreme Court prepares rulings on presidential dismissal powers for independent agency officials, potentially reshaping regulatory oversight. Quarles maintains that true independence conflicts with constitutional principles where Congress legislates and the president executes policy, yet believes the regional Fed bank system could preserve sound monetary decisions despite increased executive influence over board appointments.
