Allison Nathan hosts a discussion with Richard Clarida and John Cochrane about the independence of the Federal Reserve. The conversation explores the historical and legal basis for Fed independence, potential threats to this independence, and whether the Fed has overstepped its mandate by engaging in activities beyond monetary policy. Clarida expresses concern over potential court cases that could undermine the Fed's independence, while Cochrane argues the Fed should be more responsive to political pressure and focus on its core mandate of inflation and employment. Both guests offer differing perspectives on the Fed's current activities and the appropriate scope of its authority.
