The following reasons are given:
These arguments can be debated. However, what interests me is the argument for more Federal Reserve Transparency and Automation and I have been posting on that topic:
- Trump vs. The Federal Reserve President Trump (and a lot of other politicians) want lower interest rates to stimulate investment. The Fed has been keeping interest rates above the Attractor path given Trump's erratic economic policies. And, there are lots of problems the Fed is facing in setting interest rates too low.
- What Impact is the Fed Having on the Dual Mandate? Some politicians argue the Fed has too much power but the data shows that Fed policy manipulations don't have major effects.
- Could the Fed be replaced by a Computer Program? No, but more automation, communication, public input and transparency would help (and could be a model for other Federal Agency reform).
- Four Regimes for Fed OS 1.0 The main problem with totally automating the Federal Reserve is what to do during Economic Crises. In addition to Business as usual (BAU), three crises regimes can be identified statistically where human judgment is needed.
Over time, I will have a lot more to say about Federal Reserve and automation of other Federal Government agencies. Given the dismal performance of the Trump II administration and the mistake of Big Tech for support of Right-Wing Agendas, it is time to start thinking out of the box!
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